It Business Finance can match equity finance investors with businesses requiring an injection of funds. We have a wide range of funders willing to invest in businesses, and are also eager to take on more potential investors.

Furthermore, we can help businesses meet the requirements of potential investors, including the preparation of a formal business plan, including cash flow, profit and loss and balance sheet projections. It Business Finance Ltd understands that careful planning is a vital tool in attracting investors, and in showing that the business has potential.

We can sell your business, by illustrating to equity investors that there is a strong potential for future growth, and a return on their investment.

Equity investors are committed to the long-term success and profitability of the businesses in which they invest, in order to secure a high rate of return on their investment. Equity investors may also prove to be good sources of advice and contacts for the business, and will want to help the business grow and expand.

Equity Finance explained

Carrying too much debt can lead to cash flow problems for many businesses. It Business Finance can help businesses to find different forms of financing; including equity finance, to ensure that your business has efficient and balanced leverage, of its ratio of debt to equity. We can help businesses combine equity financing with other types of finance, in order to spread the business's risks and ensure that options are available for possible financing needs in the future.

Equity financing is a way of obtaining capital that involves selling a partial interest in the business to equity investors, and the finance can then be used by business to fund expansion, management buy-ins / buy-outs, acquisitions, new product lines and start-up businesses and products.

One key advantage of equity financing for businesses is that there is usually no obligation to repay the money, and therefore no drain on working capital through loan and interest payments. Equity finance investors are often willing to invest in early stage businesses and products, because of the opportunity for growth and a high rate of return on their investment.

However, equity finance involves the business selling a partial interest in the company to investors, usually in the form of stock. Equity investors become part owners and partners in the business, and thus are able to exercise some degree of control over how it is run, including ideas about the company's strategic direction or day-to-day operations.

What does an equity investor look for?

  • A return on their investment.
    Equity investors expect a good return on their investment. It Business Finance can help illustrate how your business can provide an investor with the type of return they require.

  • A good reason to invest.
    It Business Finance can ensure that potential investors fully understand your business, and that they are excited by the chance to help build and create a thriving business.

  • A sound management team.
    An investor needs to be sure that your business is in the hands of people who are knowledgeable and who possess the skills to lead your business to the next level.

  • A solid business plan.
    It Business Finance can prepare your business plan with you. We are experienced in providing investors with all the information they require to make an informed decision on any investment. We can show the vision you have for the business, and will ensure that investors are fully informed off all aspects of the business, including profit and loss, balance sheet and cash flow projections

  • The right to be actively involved.
    Equity investors may want to actively participate in developing your business.

  • An exit strategy.
    Before an investment, an equity investor will expect to see an exit strategy, as they will want to see how they are going to make a return on their investment, and may want to set a time scale on this.