Money, Money, Money! Ways to fund your small business…

As Britain is recovering from the economic slump of the previous years, small business is booming and the government and other organisations are doing everything they can to encourage it – which is great news for you! However, we realise that reading the small print and finding the funding that’s right for you can seem tedious, so luckily for you we’ve done all the legwork…

The Bank

Believe it or not but the banks are lending money to small businesses! Many have introduced new small business initiatives over recent years in an attempt to overcome the mistrust of banks held by some entrepreneurs since the recession. If you put together a sound business plan, you may well secure bank funding so don’t rule it out when exploring your options.

Princes Trust

The Princes Trust Enterprise programme is an extremely popular funding option for small businesses in the UK. They provide the opportunity for a low interest loan up to £7,5000 alongside one-to-one support to help you explore and test your business idea. They also throw in a free four-day workshop to give you a taste of what you need to know and do to start your own business. Once you’ve got your business off the ground they also provide you with an experienced ‘Business Mentor’ who will give you advice and support for two years. Sounds good to us!

Dragons

We all know how it works. You get in a lift, walk into a room, stand in front a panel of people with piles of cash, have a chat and leave with thousands of pounds for your business. Well, not quite. Getting money from investors isn’t as easy as it can appear on Dragons’ Den but Venture Capitalists and Business Angels invest millions of pounds in UK companies every year. Angels tend to make investments of £10,000 and are willing to invest in the early stages as well as established businesses. Although a negative may be they may be hard to track down, but we’ve been informed a great tip is to attend networking events and organisations such as the Angel Investment Network can help you make great contacts.

David Cameron

We’re not suggesting you stroll down to Downing Street and knock on Number 10 to ask the PM for cash but it is possible to get money out of the government! ‘Start Up Loans’ is a government-funded programme that has millions of pounds worth of loans to lend to small companies. You can borrow up to £25,000 with a 6% interest rate if you’re over 18, based in the UK and have been trading for less than two years. In the Conservatives’ general election manifesto the party promised to triple the number of Start Up Loans from 25,000 to 75,000 over the next five years.

Crowdfunding

Crowdfunding is becoming an increasingly popular way for entrepreneurs to gain funding. You post a pitch on a website and members of the public contribute towards your financial target. The key to hitting your goal is an engaging pitch and spreading the word using techniques such as social media posts and email marketing. Focus on telling your story and building buzz around your brand. Crowdfunding isn’t for all businesses but it’s certainly worth looking into.

Community Cash

If your business has a social mission there are lots of options open to you. UnLtd offers funding to social enterprises, as do social investors and lenders such as Big Issue Invest and Bridges Ventures, while Power to Change has £150m from the Big Lottery Fund to deliver grants to community businesses that are locally rooted and deliver activities for the benefit of local communities. We advise checking out social enterprise UK’s website too for lots more helpful tips.