How and where to secure funding
Money is often the biggest barrier to starting, maintaining or growing a business. Despite the present economic climate there is still money available to companies from various sources, some loans and even some grants.
In this article we’ll look at a few funding sources and some ideas on where to look if you have a specialism or niche offer that might attract smaller or targeted loans and grants.
Too busy? Here’s Funding in 30 seconds.
- Both Grants and Loans are available
- Start-ups and Innovation attract most funding
- A social benefit to your business may attract grants
- Specialist businesses might attract specialist funding
- Using several funds to meet one need can be a good strategy
- Partnerships also boost chances of funding
Growth Vouchers programme
This government programme helps small businesses get strategic business advice on:
• finance and cash flow
• recruiting and developing staff
• improving leadership and management skills
• marketing, attracting and keeping customers
• making the most of digital technology
Some businesses will be randomly chosen to get a voucher of up to £2,000 to help finance strategic business advice.
The voucher can pay for up to half of the cost of the advice. You or the supplier will claim this money back, depending on your agreement.
Start Up Loans
Loans and mentoring for people over 18 years old who are looking to start a business. Backed by the Business Bank.
To apply for a loan you must be:
• 18 years old or older when you apply
• living in the UK
Start Up Loans is a government-funded scheme that funds and mentors entrepreneurs.
You’ll have a delivery partner (assigned by the Start Up Loans Company) who will help you develop a business plan. This will be assessed and funding decided by the Start Up Loans Company.
You’ll get a low-cost unsecured loan, business mentoring and a range of business support products if your plan is approved.
You must pay the loan back within 5 years, and you will pay a fixed rate of interest. Capital repayment holidays are available, but you must pay interest each month.
Still have questions? Need to secure funding?
There are thousands of grant-making organisations and hundreds of loan-making bodies. Your best chance is a clear, concise and focussed application, meaning a clear idea of exactly what the funding is for and how you will demonstrate its effective use.
Hammond can help through the entire process, finding loan and grant sources, making applications, budgeting through implementation and reporting on success to investors.