Expanding your garden centre? Here are the funding options

Business finance expert Emily Relph talks through the business funding available to you.

Garden Centres are a growing industry that has potential for big profits. Greater awareness about sustainability means we’re seeing a steady rise in the market.

A recent survey by Gardening Express discovered that British gardeners will spend ?30,000 on their gardens in their lifetimes.

This resurgence makes the horticulture a lucrative market that is worth investing in.

As a business owner in this industry, you may be looking to expand your garden centre to take advantage of this recent boom.

More and more garden centres are transforming into leisure centres. They include cafes, play areas and even cinema complexes as part of the experience.

To capitalise upon these opportunities business owners will need to get investment.

There are many funding routes to consider.

Equity Based Funding

Equity based funding requires shares of your business in return for investment. You can get these funds through Angel Investors and Venture Capital.

Angel Investors are individuals or a group who make use of their personal disposable finance to invest.

Often they also bring along their business expertise and knowledge. They work with you to make your company a success.

With Angel Investors there is no need for collateral, repayments or interest.

Venture Capital usually involves many professionals whose money comes from corporations.

VC make larger investments than Angels, starting from ?500k. They not only take shares in your business but they also have a say in how your business runs.

VC firms can provide active support with human resources and financial management. They are also well connected in the business community. This often provides you with the opportunity to expand your business network.

Debt Funding

Debt funding is a form of borrowing often referred to as small business loans. Unlike investment from Angel Investors and Venture Capital firms, the borrowed money needs to be repaid with interest.

But, a benefit of debt funding is that you are able to keep full ownership of your business.

This type of funding is accessed through traditional lending facilities like banks.

Garden centres can access funding up to ?500,000 by secured loans. Collateral if offered as security, or unsecured loans where you repay the money with a higher APR.

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