Much has been written about how easy or difficult it is for UK fashion and textile companies, especially designer start-ups, to access finance. While access to trade finance and investment remains an issue for the industry, several of the high street banks regard our industry as being of great interest and have extensive dealings with fashion companies in particular.
Raising business finance is complex and needs to be done carefully. The fashion, accessories and textile industries have often suffered from a negative perception as potential investors have felt that the industry is a difficult one in which to run profitable businesses. There have been many stories about companies whose relationships with private backers have turned sour, usually because the backer has failed to understand the cash-flow implications of running a fashion brand and expected a faster return. And yet, there are plenty of companies in this industry running profitable businesses and many companies in this sector potentially represent good potential for investors.
At any stage of raising business finance, good financial discipline and access to accurate legal and financial information are essential. A number of UKFT’s Associate Members will be happy to offer their services to UKFT members, often at preferential rates. UKFT can also link members at varying stages of the process to make sure that members are able to ask questions of companies in the sector which have been through the process. In addition, UKFT runs seminars on this and other important topics throughout the year.
This guide for UKFT members is intended to help companies to consider whether they could be a potential candidate for investment and what they need to look out for. Individual circumstances vary so members should contact email@example.com for a more in-depth discussion on whether they are ready to take on the commitment.