You have a great business idea, you've found the perfect premises and even decided on a name. But before you print the business cards – have you got startup financing organised? And do you have a business plan good enough to convince a financing institution to help you? Business Partners can advise you on the various prerequisites and options for accessing finance.

When starting a new business venture, the entrepreneur has two funding options:

• equity finance – own funds, family and friends or shareholders, or
• debt finance – lending from banks and finance institutions.

Most entrepreneurs decide which route to follow in conjunction with their financial advisers, who would take your risk profile into account.

Using your own funds, like savings, pension or a retrenchment package gives you instant access to funding, while debt finance can add to your funds and provide valuable working capital to grow your business without having to relinquish shareholding.

In deciding how to structure your financing, it is important to achieve the most effective after-tax rate as possible. Debt finance, for instance, gives you a tax advantage that equity financing doesn't.

In all cases, speak to your financial adviser or contact Business Partners for help with financing.