| | Building your business post-COVID: equity funding for growth 
Mark Gibbons,
Senior Access to Finance Specialist |
During the COVID-19 pandemic, many businesses have sought financial support to survive and, in some cases pivot their business in order to remain viable. However, many funding solutions created to deal with the short-term impacts of COVID asked businesses to take on new or additional debt.
This resulted in many businesses taking on debt they hadnât planned to. While these schemes are beneficial, offering attractive terms and rates, the fact remains that the debt will continue to sit on the balance sheet with the business owners being liable.
The effect for businesses is that to acquire additional debt funding may prove more difficult as business have more debt and less headroom regarding debt serviceability.
Businesses should therefore consider whether equity funding to fuel growth has been overlooked. Businesses may be unaware of the equity options that could be open to them, and the process to secure such funding â plus concerns about perceived loss of control of their business.
Equity can be used to support growth, invest in capital equipment, enable mergers and acquisition strategies.
To find out how the Access to Finance Lancashire team can help you to explore equity funding options, get in touch. | | |
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