Cottons Group
Securing funding as a manufacturer
Securing funding as a manufacturer is crucial for growth and innovation. In 2025, the government announced a £4.5bn investment to bolster strategic manufacturing sectors, a signifi cant commitment that refl ects the importance of fi nancial support in driving your industry’s progress. In this article, we present various funding options for
Enamul Khan Enamul Khan Partner
Cottons Group you to consider.
Understanding funding challenges Despite these investments, manufacturers face several challenges when seeking funding: ■ Economic pressures: the UK’s manufacturing output experienced a decline in the first quarter of 2025, marking the fi rst contraction since 2016. T is downturn, influenced by global trade tensions and increased business taxes, has made lenders more cautious, tightening access to capital.
■ Skills shortages: the ongoing scarcity of skilled labour continues to hinder growth. The escalating cost of hiring and diffi culty placing the right talent in key roles remain signifi cant concerns for manufacturers.
■ Supply chain disruptions: persistent challenges, including geopolitical conflicts and environmental factors, have increased costs and delays. These disruptions contribute to elevated expenses and potential setbacks for manufacturing companies.
Exploring funding avenues To navigate these challenges, you can consider several funding options: ■ Government grants and incentives: the government off ers various grants to support manufacturing initiatives. For instance, the Annual Investment Allowance (AIA) provides tax relief on qualifying investments, encouraging you to invest in new equipment and technologies
■ Research and development (R&D) tax credits: invest- ing in innovation can make you eligible for R&D tax relief, reducing tax liabilities and freeing up capital for further development.
■ Regional funding programmes: Local Enterprise Part- nerships (LEPs) often provide region-specifi c funding to stimulate economic growth. Engaging with your local LEP can uncover opportunities tailored to your area’s needs,
■ Private equity and venture capital: private investors can off er substantial capital for expansion projects. However, this often involves sharing ownership and decision-making, so aligning with investors who understand your vision is essential.
Strategies for successful funding To enhance your chances of
securing funding,
you should: ■ Develop a robust business plan: articulating your goals, strategies, and fi nancial projections demonstrates your preparedness and potential for success.
ALL THINGS BUSINESS | 24
FINANCE
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