Starting a business can be an exciting and rewarding experience, but it can also be a challenging one. One of the biggest challenges that entrepreneurs face is securing financial help for business. Fortunately, there are many options available to help you get the funding you need to start or grow your business. In this article, we will explore 7 ways to get financial help for your business in the UK.
1. Government Grants
The UK government offers a range of grants to help businesses get off the ground or expand. These grants are available for a variety of purposes, including research and development, training, and capital investment. Some of the most popular government grants include the Start-Up Loans scheme, the Innovate UK grant, and the Growth Accelerator fund.
- Start-Up Loans scheme: This scheme provides loans of up to £25,000 to new businesses that have been trading for less than two years.
- Innovate UK grant: This grant is designed to help businesses develop innovative products and services. It provides funding of up to £10 million.
- Growth Accelerator fund: This fund provides coaching and support to help businesses grow. It is available to businesses that have been trading for at least one year and have a turnover of at least £250,000.
2. Business Loans
Business loans are a popular way to get financial help for business. There are many lenders in the UK that offer business loans, including banks, credit unions, and online lenders. Business loans can be used for a variety of purposes, including working capital, equipment purchases, and expansion.
- Banks: Many banks offer business loans to their customers. These loans typically have lower interest rates than other types of loans, but they may require collateral.
- Credit unions: Credit unions are non-profit organisations that offer loans to their members. They may have lower interest rates than banks, but they may have stricter eligibility requirements.
- Online lenders: Online lenders offer business loans that can be applied for and approved quickly. However, they may have higher interest rates than other lenders.
Crowdfunding is a popular way to get financial help for business. It involves raising money from a large number of people, usually through an online platform. There are two main types of crowdfunding: reward-based and equity-based.
- Reward-based crowdfunding: This involves offering rewards, such as products or services, to people who contribute to your campaign.
- Equity-based crowdfunding: This involves offering shares in your business to people who contribute to your campaign.
4. Angel Investors
Angel investors are wealthy individuals who invest in start-up businesses. They typically provide funding in exchange for equity in the business. Angel investors can provide not only financial help for business, but also valuable advice and connections.
5. Venture Capitalists
Venture capitalists are professional investors who provide funding to start-up businesses. They typically invest larger amounts of money than angel investors and may require a seat on the board of directors. Venture capitalists can provide not only financial help for business, but also valuable advice and connections.
6. Business Incubators
Business incubators are organisations that provide support and resources to start-up businesses. They typically offer office space, mentoring, and access to funding. Business incubators can be a great way to get financial help for business, as well as valuable advice and connections.
7. Business Accelerators
Business accelerators are organisations that provide intensive support and resources to start-up businesses. They typically offer mentoring, networking opportunities, and access to funding. Business accelerators can be a great way to get financial help for business, as well as valuable advice and connections.