Where to raise business finance?

I run my own business but my credit rating is not good. I am trying to find out about raising more capital but I am having difficulties and am currently having to use my personal funds for advertising etc. Can you help advise on where I might go to discuss raising finance as a small but growing business?
JW, London

The Small Business Service (SBS) is a government agency that champions small businesses.

The SBS operates a number of schemes and initiatives that are tailored to help people like you.

For example, Business Link advises and helps on all aspects of setting up and running a business.

They have 45 local area representatives with experienced advisers that can help you to steer your business in the right direction. They can be reached by phone, web or face to face.

Local Enterprise Agencies (LEAs) are partners with Business Link and carry out business counselling and training.

They have a number or courses, titled 'Start Right programme', run jointly with a High Street bank, that can help you answer some of her questions (the majority are free).

The Busygirl Network supports women entrepreneurs in developing fast-growth profitable businesses.

They represent about 8,000 corporate and entrepreneurial women and provide information about coaching and mentoring, about business development and about raising finance.

In terms of finance you can fund your business by equity, debt, grants or a combination of these.

Before pursuing any form of finance however, make sure you have a good business plan to present to potential investors.

You need to be able to communicate what you need the capital for, the nature of your business, the market and your plans and aspirations.

You should approach any experienced business people you know to see if they will be willing to take an official (or unofficial) advisory role within your firm.

They can assist in the funding process, and they are a good sounding board for the business plan in development.

It may well also be worthwhile contacting a local Business Angels network as a source of potential investors to invest.

The government has a number of schemes whereby they guarantee loans from banks and other financial institutions for small firms that have viable business proposals but for some reason or another have failed to get a conventional loan.

There may also be some special initiatives or grants that are available depending on your individual circumstances, again, a good source of knowledge is your local Business Link.

David Wilkinson, Head of Entrepreneurial Services, Ernst & Young

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.