There is one golden rule when it comes to raising cash for a new business - shop around. If your own High Street bank refuses to help you, try the other clearing banks. There are also numerous merchant banks able to provide medium-term finance.

Approaching the subject from another direction, there are several agencies which can put you in touch with organisations and people with funds to invest.

The British Venture Capital Association (BCVA) is one of them. It is the representative body for companies offering venture capital, a source of long-term finance for entrepreneurs who are ambitious to see their companies grow. Most investments from venture capital firms take the form of equity capital and their returns are dependent on the growth and profitability of the business. Venture capital organisations are more than just a source of cash, though. They usually aim to provide financial and strategic support to enable new companies to develop into major businesses. BVCA members tend to invest amounts over £100,000.

Another source of finance is business "angels." These are private individuals who invest in start-up businesses and growth businesses and tend to invest between £10,000 and £400,000. For details contact the National Business Angels Network (NBAN), a non-profit organisation with government support which acts as a catalyst and clearing house in bringing together entrepreneurs and business angels throughout Britain.

Another possibility worth considering is 3i plc, a venture capital company and member of the BVCA, which has 29 offices throughout Europe and invests in business across the whole spectrum from family firms to hi-tech enterprises. Its investments are usually in excess of £500,000

Other sources of help include your nearest Business Link, a government agency offering practical help. Business Links offer both a business information service at little or no cost, plus advice. The local enterprise agency is another good source of support for the small or new entrepreneur, and the details of the your nearest agency can be found through your local Business Link or in the Yellow Pages under “Business enterprise agencies”.

Local enterprise agencies are independent organisations supported by a partnership between local industry and local and central government. They are nearly all run by experienced business people offering confidential counselling, sometimes free of charge, to people wishing to start a business. They can advise on problems to do with sources of finance and with marketing, planning, training and locating premises.

To find your nearest agency contact the National Federation of Enterprise Agencies (NFEA) or see their website at http://www.nfea.com/