The right funding can provide valuable financial flexibility. The wrong arrangement can add cost and pressure at precisely the wrong time.

Before approaching a lender or investor, it is important to define the problem the funding needs to solve. Covering a temporary cashflow gap requires a different approach from purchasing equipment, financing stock or opening a new location.

A clear forecast can help you determine how much capital is required, how long it will be needed and what the business can realistically afford to repay. It can also help you avoid borrowing too much, too little or for longer than necessary.