SRLV guide to finance
UK Music has gathered together in this Guide generic information on different means of personal and business/company finance and created a resource that is intended to be simple to follow. It does not amount to advice (from UK Music or anybody else) with respect to the merits of any of these various products and services, or as to whether any of them is suitable in your personal circumstances. Click here to read this in full.
Are you looking for finance and don’t know where to start? Our quick start guide will help guide you through the finance maze.
You might be a tour manager looking to fund the band’s live dates for the forthcoming Festival season and need short term finance until the fees are paid. You might be a record label that needs to invest in new studio equipment and need to borrow a reasonable amount of money for the medium term of up to 5 years or are you an established business that wants to expand and needs to make a substantial investment in the long term?
The ability to secure finance and the amount you can borrow is subject to the circumstances of the individual or business and is at the discretion of the provider. In order to secure finance from any source and for any period of time, you will need to have a detailed understanding of the amount of money you need and exactly how it will be spent, how much money you need to raise from a provider and for how long, including the repayments you can afford.
Depending on the amount and length of time you need finance for, detailed business plans, cash flow forecasts and management information will be requested. You should be ready to answer questions on how realistic and commercial these forecasts and plans are. Credit checks, scoring and due diligence will usually form part of the application and acceptance process and you will need to demonstrate the ability to make the necessary repayments or return on investment.
As security for the finance, the provider may also take a charge over your house or business assets and then these assets are at risk of being seized and sold by the finance provider should you not be able to repay the loan. All forms of finance have conditions and certain requirements that the borrower will have to adhere to and care should be taken to understand what these are, along with the consequences of non repayment in accordance with the terms agreed. There is also tax and legal considerations that should be made when obtaining finance.
Covering all these considerations is beyond the scope of this website and you should therefore seek advice from your independent financial adviser, accountant or lawyer, as appropriate and the associated cost of this advice will need to be factored into your cash flows and cost of finance calculations.
There are many forms of finance available, many of which need repaying and some, like grants or even crowd funding, that don’t. In order to work out which form of finance may suit your circumstances you need to have an understanding of the types of finance and what they mean. Here we take a look at some of the potential options.
Click on each of the below links for more information:
We have helpfully provided a definitions page to help you navigate commonly used terms in the finance industry with which you may not be familiar.
Please click on the link below to take you directly to that page.
Content published December 2013.