Lloyds TSB: Rebuilding Businesses

Business Networking Tips
Finding the time to network with other business owners and industry experts can be a real challenge when you’re busy running your own company – after all, time is money and sometimes networking seems like a waste of both. However, networking could actually save you money in the short term and could even make you money longer term as communicating with your peers is one of the cheapest – and often under-rated – ways of raising the profile of your business.

As well as opening doors and creating opportunities to win new business, networking with other business owners is also a great way to learn by sharing experiences like managing people or coming through financial difficulty.

Networking used to be synonymous with a room full of professionals exchanging business cards, and was often a time consuming exercise. However, just as technology reduced the prevalence of ‘face to face’ style of business, it has also made it easier to find people, therefore forums or events are worth dedicating some time to – in person or online.

The Business Link website is a great place to start, and through it you’ll find national resources plus, it may also help you build a picture of what is happening in your local area.
If you’re looking to improve your own profile and make some local contacts before you attend any events, ‘social networking’ websites and communities are increasingly offering businesses the chance to get plugged in to what is going on in your area or industry and join conversations on local and national issues which could impact your business.

Sites such as linkedin.com or twitter.com might not be for everybody but, once set up properly, can provide you with great insight, industry news and new contacts to meet up with. Some even facilitate peer to peer mentoring like ecademy.com and horsesmouth.co.uk

For something that costs virtually nothing but time to implement, it is relatively simple to sign up, take a closer look and see what this kind of networking can offer you.
Of course, for those who prefer not to do their networking online Lloyds TSB Commercial is holding 200 face-to-face events nationwide this year, which gives you the opportunity to meet other local business people and listen to insight on a range of topics. Upcoming events will include practical guidance on the business impacts of environmental issues, including climate change, bidding for contracts for 2012 and employment. Trained Business & Environment Partners will be on hand to help attendees see how they can capitalise on the potential opportunities these represent.

For further details, visit your local branch or for more business tips visit www.supportingbusinesses.co.uk/lloyds/business-tips

Securing Funding
Understanding your market, your business and your proposition remain the cornerstones of funding for small and medium-sized enterprises, which is why it is crucial for lenders to build close relationships with customers.

There’s no cookie cutter approach, each business is assessed on a case-by-case basis and any agreed funding has to be tailored to meet each customer’s needs. However, all applications are considered against a set of key principles.

By understanding these criteria, firms can structure their proposals
to show clearly how the funding will help the business achieve its objectives.

• Track record
Your credit history including the way your bank accounts have worked, borrowing repaid and trade credit performance is an important indicator to any lender.

• Capability and experience
The ‘capability’ of the business is in part about evidence of profitability, as well as how the firm has adapted to any challenges. For start-ups, the owner’s previous experience of the industry in which the business operates is relevant.

• Existing capital
You have a better cushion against unexpected events if there are reserves in the business. It also means that assets need to be able to provide security.

• Proposition
Capital investments require longer term finance; working capital is best funded by revolving facilities like overdrafts. But remember the purchase of new assets can often lead to a business requiring additional working capital.

• Repayments
The most important issue lenders must assess when agreeing any request for credit, is whether the company can afford the repayments. Will the additional lending be serviced from existing trading or projected new income? Thorough business plans, recent trading history and realistic cash forecasting are essential here.

There are a range of funding options available for start-ups and small businesses alongside traditional loans and overdrafts. For example, factoring is a simple way to enhance cash flow by advancing cash tied up in invoices and leasing is a good way to acquire new plant, machinery and vehicles.

By working closely with your banking partner and providing regular updates on company plans, you will also be in the best possible position to secure the right financial solutions for your short, medium and long-term needs.