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Funding Programmes for UK Start-Ups
When you just getting started in business, you will likely need funding to get the ball rolling. Start-ups have become the new pathway to success, with many of the online and tech businesses becoming profitable more quickly than years prior. But this doesn’t happen without the money you need to invest in the company. Luckily the UK has created a start-up friendly environment that provides opportunities for young companies. By doing your research and getting familiar with what kind of funding you need, you will be able to find a grant, loan, or an alternative to get started on the process of realizing your company and following your dreams.
The government of the United Kingdom offers quite a few options when it comes to start-up loans for small businesses. Starting at £500 and going all the way up to £25,000, you can find the right grant to help you invest in your company. This is an unsecured personal loan, not a business loan. You will get support and guidance free of cost to write a business plan. To apply you need to live in the UK, be over 18 years old, and have a business that has been trading for less than two years. The loan can be repaid over a period of one to five years and there’s no fee to apply or pay the money back early.
The Regional Growth Fund
If you are looking for more funding but less than a million pounds, you can apply for the Regional Growth Fund (RFG). A programme ran by national and local organisations, they offer cash grants and loans to businesses. They have given out £1.7 billion since 2011 to small and medium-sized businesses. You are eligible if your business hasn’t launched yet or has been trading publicly less than a year. This programme also offers free business planning support, and every application is considered according to the needs of the business. The average loan is about £6,000.
Business Finance Partnerships
The UK’s government has also invested £1.2 billion with the Business Finance Partnership. According to the experts at the site MoneyPug, which is used to find personal loans, the Partnership is designed to diversify funding sources that are available to small and medium businesses through lenders that aren’t banks. While the loan terms vary, business can directly apply with a non-traditional fund manager or other lenders. This is a good way to get finance for a number of up-and-coming companies.
UK Export Finance
Helping UK exporters by underwriting bank loans, the UK Export Finance cultivates buyers of UK products abroad. The programme takes on the risk from the bank, which means banks will be much more likely to approve the loan. It also helps exporters raise contract and tender bonds while accessing capital. Your business must be in the UK and the buyers must be abroad for you to apply.
Research & Development Tax Credits
The research and development tax credit programme allows a company to claim back development costs in cash every year. Start-ups focused on research and development can claim up to 32 percent of these costs a year, which even includes staff and contractor expenses. The paperwork is easy and there are even experts who will help you out with it to make sure you have the chances of being approved.
Childcare Business Grants
To help the field of childcare, the UK government has pledged to support entrepreneurs in the field. The goal is to not only increase the number of childcare providers, but to lower the prices for the average family. New businesses are eligible for this grant, you can’t be more than just three months old. If you are looking to get into the childcare business, this is the perfect grant.
There are funding options for specific ventures like childcare and R&D, or broader options like business financing partnerships. Whatever your start-up, there are many ways you can invest in your company and get started. With this essential funding, you can take your dream and make it a reality. Do your research, understand what you need, and know how you will pay the money back. If you show due diligence, you will be in a great position to take advantage of grants and loans that can be the difference between success and failure.
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DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.
TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business, CyberSchmooz, and BizCafe.