Most businesses in Ireland require an injection of extra capital at one time or another, either for positive reasons, such as expansion and growth or negative reasons, such as a temporary cash flow problem.
There are various ways that you can try to find this extra investment such as bank loans, a private investor or equity release and while the extra finance might be needed at a critical moment, it is vital to find the way that will attract the lowest interest rate.
It may be tempting to rush into a loan agreement with high interest rates, but this loan will soon become a millstone around the neck of the business and may even prevent further growth or push the company into financial problems.
If the extra cash is needed for a positive reason such as expansion then it will of course be easier – but not easy! – to find than if it is needed to pay the suppliers or other bills. Have a revised business plan worked out to the finest detail, showing how this injection of funds will affect the bottom line and what the investor will get in return.
Thank hard if you have to remortgage your house or put in some personal security, as once committed there is no going back and you could lose your home in the end.