The business in you is bigger than you think

For a small business seeking funding to grow, choosing a finance option may seem as complicated as obtaining the funding itself. The best way to ensure you’re getting the right type of funding is to be fully informed of different types of finance as well as the status of your business before making any major decisions.

In addition to traditional bank loans, there are a range of options for business finance available through the Government and private sectors, including:

• Start-Up Loans: Available for 18-30 year olds living in England, these loans come with a package of business support and mentoring to help young entrepreneurs get started on the right foot. The loans, which average around £2,500, are distributed via private banks. Get more information and apply online here.
• Enterprise Finance Guarantee (EFG): The EFG provides additional lending to businesses that lack the security needed to secure a traditional loan. EFG financing is available through your bank. While the Government guarantees the lender for most of the loan, the Government has no impact on the loan decision process. More information is available here.
• Seed Enterprise Investment Scheme (SEIS): SEIS aims to help small, early-stage companies to raise equity finance by offering significant tax relief to individual investors who purchase new shares in those companies. It complements the existing Enterprise Investment Scheme (EIS). Find more about SEIS on the HMRC website or sign up for a free educational session in your area about SEIS and other business finance topics here.

Additionally, the Business Finance and Support Finder features resources that can help you with the questions to ask yourself to plan, prepare, and apply for the funding you need to grow. There are also steps on how to create a business plan, which is a key aspect of a successful financial application.

 Business Finance for You is another source of helpful information on business finance. Business Finance for You brings together finance providers from angel investors to Government schemes and enables you to search for funding options based on your region, the lifestage your business is in, your business sector, the amount of funding you need, and/or the type of funding you’re interested in. The site also houses loads of case studies and resources to  help explain the sources and types of funding available.

Additional Resources

For more information about finances, visit gov.uk:

Financing Business Growth – Your Options
Business Finance Explained
Guides for Managing Cashflow
Find Grant and Support Schemes
ICAEW Small Business Finance Best Practice Guidelines
A Guide to Financial Management for SMEs
Better Business Finance TV
Start-up Loans