How to Raise Finance for Your Growing Business
From start-up to scale-up: preparing for growth by understanding funder expectations and getting your financial house in order.
Scaling up your business is exciting – but it also comes with its own set of challenges. One of the most significant? Securing the right finance to fuel that growth. At Zyla Accountants, we often work with entrepreneurs and SMEs who are looking to transition from start-up to scale-up, and the path is rarely straightforward.
Without a sustainable source of funding, businesses can find themselves struggling to manage the demands of expansion. Many promising ventures have failed at this crucial stage simply because they didn’t plan ahead or raise the necessary capital. So before making any bold growth moves, it's vital to take a step back and build a clear financial strategy.
Is your business ready to scale?
The first question to ask is whether your business is actually scalable. Paul van der Walt, a fractional CFO who supports high-growth start-ups, puts it plainly: “Scaling isn’t just about doing more, it’s about replicating the success you have.” That means understanding your model and whether it can deliver consistent results as you grow.
Cash flow forecasting and financial planning are at the core of this process. Without them, it’s hard to know how much money you’ll need – and when. “Growth often involves a lot more cash upfront than you might expect,” van der Walt notes. “So it’s about planning for growth in a realistic way.”
Understanding what lenders and investors want
With a growing number of financing options available, knowing what each funder is looking for can give you an edge. Steve Conibear, UK Network Director at the British Business Bank, stresses the importance of preparation. “Finance providers will expect to see a comprehensive business plan that shows the future direction of the business, including your product strategy, key goals and objectives, sales forecasts, target customers and pricing strategy.”
Whether you’re hiring, investing in new equipment or expanding into new markets, scenario planning is a powerful way to assess different funding needs under varying conditions.
Dequan Walker, CFO and Strategic Growth Leader at Marsh International Affinity, advises that profitability planning is just as important. “Analysing resource constraints allows you to understand which products and services generate the most profit, and that allows for a much more effective allocation of resources.”
This insight doesn’t just help you run the business better – it can also make you more attractive to funders. Investors and lenders want to see that you have a deep understanding of your operations and are able to adapt if things change. “A business that can demonstrate a clear understanding of profitability shows it has a good handle on operations and can pivot when needed,” Walker adds.
Prepare your financials
Funders need assurance that your business is financially sound. Debt providers in particular will want to know there’s a strong likelihood of getting their money back. That means producing clear, up-to-date financial information: profit and loss statements, income statements and balance sheets.
While forecasts are important, many lenders focus on your current financial health, so make sure everything is accurate and well presented.
Equity investors, meanwhile, will take a different approach. They're looking for high growth potential and a compelling story. According to Conibear, they’ll want to understand how your business stacks up against the competition – and they’ll examine the founding team closely. “Investors, particularly angel investors, and less so VCs, may be taking a seat on the board so it’s important they can get on with those founders of the business.”
Managing risk
Understanding and mitigating risk is essential if you’re going to secure funding. Here are a few key areas to consider:
Credit risk: Both personal and business credit scores matter. A poor credit history can lead to higher interest rates or a rejection from lenders altogether.
Market risk: Shifts in your industry, new competitors or changes in customer behaviour can affect your ability to generate revenue.
Operational risk: Inefficiencies or internal issues can erode trust from funders. Having robust systems in place is key.
Financial risk: High levels of existing debt or negative cash flow raise concerns for lenders. Understand your repayment capacity and be ready to explain your position.
Reputational risk: Public perception matters. Negative reviews or PR issues can deter funders, even if your finances are sound.
Final thoughts
Raising finance is about more than just presenting your business in the best light. It’s about building a solid financial foundation, demonstrating that your business is scalable, and clearly communicating your strategy for growth.
At Zyla Accountants, we help businesses like yours put their best foot forward when approaching lenders or investors. Whether you're exploring debt finance, looking to attract equity investment or simply want to understand your financial position better, our team can support you every step of the way.
Further reading:
For a comprehensive overview of the finance options available to UK entrepreneurs, SMEs and growing businesses, we recommend The Business Finance Guide, produced by ICAEW’s Corporate Finance Faculty and the British Business Bank. It’s an excellent resource that outlines the routes to funding and offers insights on how to prepare for growth.