Business Startup Loans And Grants Uk – As the business grows slowly but surely, you have a well-sustained and profitable customer base that provides you with a comfortable income, good relationships with suppliers and a happy team working for you. You realize you’re ready for the next step but realize you don’t have the money to fund it. Bank financing is scarce and your bank manager won’t extend your facility, so what are your options?
While we’ve seen some interesting sources of alternative financing over the past few years, here are some you may not have already considered:
Business Startup Loans And Grants Uk
A government-funded scheme to provide advice, business loans and mentoring to startup businesses. Available to businesses under 24 months run by people over 18 years of age. The business must be primarily based in the UK. Personal loans for business purposes. One loan per person, but if there are 5 people in the business – everyone can have a loan.
How To Get A Startup Loan
Ideal for start-up businesses looking for loans of £500 – £25,000, with terms of 1-5 years and a fixed 6% annual interest.
Funding Circle was created with a big idea: to revolutionize the outdated banking system and secure better business for all. Thousands of ordinary people and the UK government are working together to lend money to British businesses.
For Investors – You can earn a current estimated return of 6.4%* per annum, return British deals and set options to access your money early
Ideal for growing businesses looking for loans of £5,000 – £1M with terms up to 5 years. Instant funds and no early repayment charges.
Apply For A Start Up Loan For Your Business
Short term unsecured money for any business purpose. Rates are determined by risk and credit rating. ezbob strives to provide fast service on market funding on demand (once you are approved of course).
For businesses – loans of £1,000 – £120,000, with terms of up to 15 months. Instant funds and no early repayment charges. One click loans and online applications.
Turn cash flow into a competitive advantage with revolving credit facilities, giving you access to £1,000 – £50,000 on demand at rates of 8-10% over 1-6 months. Once approved, you can draw and repay as needed.
Reward-based crowdfunding, where people pledge money in exchange for rewards. The reward can be a product, service or experience produced by the project. Say a baker looking to fund a bakery trades one loaf of bread a week for an investment in his business. Benefits include business validation, marketing (everyone shouts about it) course and attorney funding. Usually leads to match funding.
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Fees are 5% of project value, plus transaction fees – paid only if your project is successful.
Ideal for businesses looking to fund a modest project or asset purchase, where the business is able to repay the funds with rewards instead of cash.
Crowdcube is the world’s leading investment crowdfunding platform. It is the largest network of angel investors supporting British business and has raised over £70m from a community of 150,000+ investors. Crowdcube enables anyone to invest with professional investors in start-up, early stage and growth businesses through equity, debt and investment fund options.
Ideal for ambitious businesses looking to grow, loans from £20,000 – £several million with flexible terms and rates.
Free Startup Budget Templates
(Please note, we are not advocates or agents for any of these schemes, the purpose of this article is to bring alternative sources of finance to your attention so you can investigate and consider their suitability for your business and your future growth plans – we do not encourage you to borrow money or rush into it without first doing due diligence. Lend anything!)
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As an unemployed aspiring entrepreneur, you may feel that there is little financial support available to help you start a business.
Banks will check your credit history before lending you money, but investors may be reluctant to back a concept you don’t have the resources to check or prove. Mentoring and peer support come more easily to those who already have connections in the business world.
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Fortunately though, there are a number of ways unemployed entrepreneurs can get financial support – and one of the most popular is through business grants.
There are currently thousands of grant schemes operating across the UK, each with its own strict eligibility criteria aimed at achieving your business, based on where it is based and more.
If you’re not in work, you’re not limited to schemes specifically for the unemployed – and there are plenty of other grant-making organizations that accept applications from both the unemployed and the employed.
However, since there are so many schemes available and for all different purposes, it will save you time and energy to narrow down your search specifically to business start-up grants, as you are likely to fit the unemployment selection criteria. It is likely to provide you with what you need most.
Top Startup Grant Programs In The Uk
A new Enterprise Allowance scheme run and provided by the government aims to help the unemployed become self-employed and start their own businesses.
If you are eligible and your application for NEA is successful, you will first be matched with a business mentor. They will give you business advice and help you write a business plan.
Once you have completed your project and it has been approved by your mentor, you can apply to receive a weekly allowance of up to £1,274 as part of your NEA participation and paid to you over 26 weeks. You can then apply for a loan of up to £1,000 from the government to help with start-up costs.
To inquire about getting the new Enterprise Allowance, you can discuss it with your Jobcentre Plus work coach or call the Universal Credit helpline.
How To Start A Business In The Uk: An Expat Guide
If the NEA isn’t right for you – or if you want to explore more options before settling on one – there are plenty more UK-wide schemes to help the unemployed start their business dreams.
If you’re aged 18 to 30, you may be eligible for a grant from the Prince’s Trust, which offers financial help to young entrepreneurs with limited means who are unemployed or work less than 16 hours a week.
Or, if you are unemployed after serving with the armed forces, you may be eligible for the Royal British Legion’s Be the Boss scheme.
It provides veterans and service men and women with a business grant of up to £7,500, a loan of up to £30,000 or a combination of both (although the amount awarded does not exceed £30,000).
Why Can’t Startup Businesses Get Bank Financing?
In addition to the above schemes available nationally, you may find that your local council offers initiatives to help unemployed people start and/or grow their own businesses in your area.
For example, Broadland District Council’s start-up grant offers £750 to support unemployed aspiring entrepreneurs in Norfolk’s Broadland District. Applicants must submit a business plan and cash flow forecast and their business must not have started trading yet.
Get in touch with your local authority to discuss whether they offer a suitable grant scheme for your situation and your business.
Graphic designer Kim Gee, founder of Kim Gee Studio, was unemployed when she came across the Isle of Man’s Micro Business Grant Scheme.
Focus On: Startup Business Loans Uk
The scheme is designed to provide budding entrepreneurs and small startups with the financial support, training and business acumen they need to get their businesses off the ground.
“I moved from New York City to the Isle of Man in 2016 and thought I’d immediately find a job as a graphic designer. I met with recruiters and kept my eyes peeled, but no one was hiring designers at the moment, and I didn’t want to wait around. -gig, Kim Ji Studio, freelance Provides graphic design and illustration.
“In my first few months of self-employment, some local friends asked if I had heard of the Isle of Man’s Micro Business Grant Scheme. When I saw the scheme it seemed too good to be true: free class, with free money at the end? Sign me up.
“I filled out an application and completed a crash course over the summer, and by fall I had a small weekly stipend hitting my business bank account. I met new friends and started seeing quarterly business mentors, which meant I finally had someone who cared about the success of my business.
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If you need more help finding the perfect grant scheme, check out our guides to read more
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