Feature
Growing Your Business funding Finding for your business
You have come up with a brilliant service or product and you have a plan for growth – all you need now is funding to get your business venture off the ground. There is a range of funding options available for start-ups and small businesses, you just have to make sure you pick the right one for you.
Bank loans In order to secure a bank loan, you will first need a solid business plan that includes information on your business aims, your projected revenue, any potential pitfalls you may encounter and how you intend to tackle those issues. If you cannot guarantee the
loan yourself, it may be prudent to ask about the British Business Bank’s Enterprise Finance Guarantee (EFG) scheme, which the Government introduced to help small businesses secure finance.
Grants The good news is there is a huge selection of business grants available which can offer a wide range of financial support. The bad news is that they are extremely competitive and quite often have a lengthy application process; each grant will have its own requirements and criteria for applying, so you will need to carefully tailor your application to each one. However, the Government is
committed to supporting SMEs – visit
www.gov.uk/business- finance-support to find a full list of all Government funding opportunities based on the location, size and type of business.
Business angels A ‘business angel’ is an individual (or a group – think the BBC’s Dragon’s Den) who offers cash in exchange for a share of your business. Some business angels will act as a silent partner while others will take a more active role in your venture. It is up to you and your angel how active a role they will take on.
58 CHAMBERLINK April 2018
Asset based finance Assent based finance involves borrowing money against assets you already own. It could be tangible assets, such as equipment, machinery or your inventory, or less tangible assets, such as invoice (if you are waiting on a payment, you can borrow cash against that payment or sell the debt.) Asset based finance can be
more flexible than loans or overdrafts as it can offer a bespoke funding solution built around your business needs and requirements.
Corporate venturing Corporate venturing is the practise of directly investing corporate funds into an external start-up in exchange for a stake in the business. This can be a great choice if
you have a brilliant, innovative idea for a business but do not have access to the finances and resources a large company can provide. However, keep in mind that
you may need to give up a portion of control of your business in exchange for those resources – but, with the right partnership, the rewards can go beyond financial help. Some firms may offer a strategic alliance to the smaller companies they support, helping them develop products that will generate income for both parties. Additionally, depending on the company, the resources provided can include everything from office space and state-of- the-art technology to a dedicated marketing team at your disposal.
‘Asset based finance can be more flexible than loans or overdrafts as it can offer a bespoke funding solution built around your business needs and requirements’
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