For most new businesses that fail, the reasoning behind their collapse has something to do with cash flow problems.

Those first few months when your business is just finding its feet are vital and before business owners begin trading, they need to make sure they have enough money to set up the business and cover initial running costs.

So, what are the most common sources of finance when you are starting your business and which are the most reliable?

Personal savings and informal loans

This is the most common sort of finance for those that are starting their own business. Informal loans are those that are provided by friends and family that may be on preferential or 'soft' terms, including the possibility of an interest-free loan.

Relatives or friends may also consider investing money in a business in return for a share of its ownership, even if they act as a 'sleeping partner'.

Venture capital

Venture capital is a method of financing a business where a proportion of the firm's share capital - or equity - is sold in return for a cash investment in the enterprise.

The only downside of this financing option is that it means some measure of control or ownership over the business must be passed over to the new shareholder.

Business angels

Business angels are private investors who look for opportunities to invest money into new or growing small firms. Most regions of the UK provide services that match business angels with suitable start-ups, which encourages local investment and mentoring on a small scale.

Equity-based crowdfunding

Crowdfunding is when multiple people invest a very small amount of money in a business. Crowdfunding platforms are available that can match businesses with relevant investors.

Government grants

Grants provide finance to allow a business to undertake a specific project that, without financial assistance, would not be able to proceed. Such projects might involve the initial start-up of the business, developing a new product or buying equipment.

Unlike a traditional loan, grants generally don’t have to be paid back unless the business fails to comply with the specific eligibility requirements and conditions of the scheme.

Are you seeking finance for your start-up business? We have a number of funding options available on our site and are able to match businesses with high-quality investors. Find out more here. 

According to recent statistics, the manufacturing industry in the UK is seeing good levels of growth at the moment.

Regardless of slowing down in the three months leading up to march, the industry is still operating ahead of long-term averages. The survey from business lobby group the Confederation of British Industry revealed that export order books have remained largely unchanged, but could manufacturing firms keep pushing for further growth by embracing the benefits of sustainability?

Read on to find out more about the benefits of sustainable practice for manufacturing firms.

Increases consumer demand

Consumers are looking for more than just products that they like, they also want to buy into brands and companies that they trust, believe in and respect. If, as a manufacturing firm, you start behaving in a more sustainable way, you may find that you are able to attract a new kind of clientele, who like the fact that you care about your environmental footprint.

Employee retention

Employees love the chance to feel as though they are part of something bigger and better, and behaving in a more sustainable way can help you to achieve this. If you create a company culture that is committed to behaving in a sustainable way, you will find it easier to retain key members of staff who are keen to keep up with these behaviours.

Leadership

On a larger scale, you need to consider how sustainable practice can help your company become a key player in the discussion about the environment. Embracing sustainable behaviours can help you propel your business forward and is also going to give you a more positive public perception.

Increase your businesses ability to comply with regulation

The government is responsible for implementing guidelines that businesses need to adhere to with relation to sustainability. As the discussion about climate change and the environment becomes increasingly more commonplace, getting on board with sustainability can ensure that your business is in a position to meet new regulations in a timelier manner.

Attract more investors

Much in the same way that it helps with retaining key members of staff, sustainability can also help with attracting key investors, especially the millennial types that have been brought up in an era of environmental protection messages.