Investment Options

Contents

Overview

If your business is short of cash flow but it is viable and has potential to expand, it might be worth considering looking for an investor.


Investors invest in businesses primarily to earn a financial return on their investment. They provide funding in exchange for an ownership stake in the business or for a promise of future repayment with interest. You need to carefully weigh up what equity stake and share of your company's profits your business can tolerate.

Types of investors

There are several types of investors who might be interested in investing in a business in the UK. Here is a simple guide:



It's important to do your research and choose the right type of investor for your business needs. Be prepared to provide a clear business plan and financial projections to potential investors to demonstrate the potential for growth and return on investment

Advantages of investors

There are several benefits to seeking an investor for business:

It's important to carefully consider your options and choose an investor that aligns with your business goals and values. Be sure to have a clear plan for how you will use the funding, and to have a solid understanding of the terms and conditions of any investment agreement before entering into it.

Social investors

A social investment company is an organisation that provides finance to social enterprises or charities, typically through loans or investments, with the aim of generating both social and financial returns. Social investment companies are mission-driven and seek to create positive social impact while also generating a financial return on their investment.


There are several ways that a social investment company can help your organisation:

It's important to research and choose a social investment company that aligns with your organisation's values and mission, and to have a clear plan for how the investment will be used to achieve both social and financial objectives.

Disadvantages of investors

While seeking an investor for a business can have many benefits, there are also some potential disadvantages to consider:

It's important to carefully consider these disadvantages and weigh them against the potential benefits of seeking investment, and to seek professional advice before making any decisions.