The availability of finance assists in the formation of new businesses, and allows businesses to take advantage of opportunities to grow, employ local workers and in turn support other businesses and the economy as a whole. The strategic use of financial instruments, such as equity and debt financing, is key to the success of every business.

However, before you approach a lender for a loan, it is important that you understand the different types of funding available, how these operate and the factors that will be used to evaluate your application.

Factors to consider:

• The various sources of short, medium and long term finance
• How to determine the financial requirements of a business
• The different sources available for sourcing venture capital
• Understanding what lenders and investors look for in small businesses
• The role of the time value of money, including compound interest