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Each week, a specialist in a business subject joins us in the studio for 5 live's On The Money to answer your business questions. Clive Lewis is Head of Enterprise at the Institute of Accounting. He's been answering your questions about balancing your books.

Can you repeat the "turnover is vanity" mantra? Nic in london

Turnover is vanity, profit is sanity, cashflow is reality

Another one which is pretty enduring is "Cash is King"

Any advice on start up funding please? I have equipment to put into a business but no cash for advertising etc. Danny in Hertfordshire

If the equipment has a resalable value, I suggest trying an approach to a Finance company to see if they will consider a sale and leaseback of the equipment. is a good starting point.

Otherwise in the event that a normal loan from a bank is not an option the following alternative sources of finance and or grants might be possible.

Friends and / or family - a friend or family member particularly one with experience of running a business might be prepared to lend you the money. But you need to draw up a written agreement specifying when the loan will be repaid and any interest payable.

Many early stage business people use their Credit Card to fund expenses - items such as travel, stationery, petrol can be purchased on credit cards which, provided the debt is controlled, is a good way to fund the early stages of a business, although interest charges can be relatively high

Another alternative which might be an option for you is to join a Credit Union. The (ABCUL) website provides information regarding their members and their services. Some of the larger Credit Unions offer current account facilities. If you live in an area served by one of these credit unions you might be able to avail yourself of their facilities. If you are able to save with a credit union (usually for a period of at least 3 months) you might then be able to access their lending facilities.

Finally there is advice on raising business finance through the businesslink.gov.uk website. For detailed help go to Apart from offering advice on raising finance Business Link offer help with starting a business, as well as helping start-up businesses to access grants. The Businesslink.gov website gives details of how to find your local Business Link office.

Hi, I have set up a new business only 9 days ago, a Recruitment Business called Stanton House. What advice can you offer for sourcing cost effective advice from experienced and successful small business owners? Many thanks, Nick Eaves

There are a number of business organisations which hold events which are excellent opportunity to network with other business people. These include

They all charge for membership but I'm sure you could attend a few events to see what they offer and whether their membership provides good networking opportunities.

I don't know if you have got an accountant. If not I think many chartered accountants offer sound advice based on their experience of running their business and of talking to clients from a range of business sectors. If you need to find a chartered accountant go to, visit the ICAEW.

The biggest obstacle most entrepreneurs face is lack of funds. What's your advice on overcoming it? Mo from London

This is such a wide topic and I do not know anything about your business, stage of development or your particular problems with a lack of funds. So the following can only be very general.

Cash is King
When making business decisions always think what the cash implications of it will be. Got a new customer who wants to pay in 30 days? Can you afford the investment in working capital? If it is doubtful either turn the order down or try an alternative like a discount for immediate payment.

Need an asset - think about buying on credit.
Buying on hire purchase or leasing gets you the asset but payment id deferred to extend over its useful life.

Think about your credit rating
If you have a bank account think that they use behavioural scoring so going into an unauthorised overdraft can mean a future application for credit will be refused. Paying suppliers late can also damage your credit rating.

Always know your bank balance and try to anticipate future cash difficulties
A simple spreadsheet can be used to do a cashflow forecast. But you need to keep it up to date.

Talk to your bank about what they can do for you.
Banks try to be helpful and knowing your relationship manager and having a regular conversation about your business progress is vital.

Talk to your accountant
Accountants see a wide range of businesses and generally are aware of what the local banks might offer. They can offer advice and help prepare cashflow forecasts or business plans.

Some business is good for cashflow and some may not be.
Be aware of the customers or products which are good cash generators and those that are not.

There's a lot more information on the page

On The Money goes out on 5 live between 8 and 9pm every Sunday night