It is not easy setting up a business from scratch. There are different options for business finance. The most common is self-financing and business loans. Another way is to attain investment from a Business Angel or Venture capitalist. There is also an array of government grants out there too. What if you are a small business or sole trader and cannot secure a bank loan? The savings may be running low? What if you have looked and there is no current grant to suit you? If you need a little extra for cash flow or need it for that project there may be another way. Some organisations are offering a bit of support. [Read more...]
Financing a start up business
February 11, 2011 By
So you have a great idea. You have decided on a name. You have even completed the business plan. Ideally you have written the plan with the preferred investment option in mind but we all know that starting business costs money. This is often the hurdle that prevents a lot of new ideas from leaving the first base. Well depending on your idea, here are a few choices you can take.
Self-financing – Using your money is the most popular form of financing a start-up business. Even if you do seek a business loan you do need to show that you have some savings or self investment. This is still a risky option and depends on the success of your business.
In order to pull this of, you will need to assess your assets. This could be; savings, property, vehicles and things that can be used as collateral for a loan. You will need to calculate how much you will actually need and aim to keep start up costs as low as possible. For loan options, credit cards are expensive but have been done before. You could also consider getting a mortgage or second mortgage. [Read more...]
Enterprise Finance Guarantee
February 8, 2011 By
If for any reason a small to medium company with a clear business plan requires a loan, and is struggling to get one from a lender, there is a solution. The credit crunch has had an affect on most of. That is where the government Enterprise Finance Guarantee can help.
The loan guarantee scheme, run under Department for Business, innovation and skills provides lenders a government guarantee for 75% lenders exposure on non individual loans. If you can provide 25% collateral, the rest is guaranteed by the government scheme. Set up January 2009, the aim was to keep the economy running during the recession. [Read more...]
Future For Start Ups
February 3, 2011 By
“Business is the driver of economic growth and innovation” is taken from Conservative Party website as they pledge to boost enterprise, support green growth and build a new responsible economical model. As there is an increase in redundancies and unemployment from cutting public sector, the need to encourage those in long term unemployment is ever present.
If you have not already heard, Conservatives and the coalition plan to wind down the existence of Business Link. As an online support and guide for those wishing to start their own business, surely it would greatly assist in what Conservatives would like to achieve. [Read more...]
Business Finance
January 28, 2011 By
When starting and running a business, there are many different costs to consider at different times. To help along the way, various organisations help guide business owners with everything to do with business finance. It is important to get good advice and ensure you plan well; it could save you thousands of pounds.
At start up stage, the focus is on how to raise finance. It is essential to choose the right finance when starting up. Whether you self-finance your start up, get a bank loan, grant or are funded by venture capitalists; planning is essential. As the business grows, you should know your business well and be able to identify the right finance options. The best way to apply for funding such as a bank loan, venture capital or government grant is to use your business plan. [Read more...]
Business Loans
January 25, 2011 By
A business loan is a bank loan that has been specifically tailored to the requirements of a business. Business owners will opt at any time to access cash this way for various reasons including, business start up, growth or business improvement. It is often possible to borrow between; £1000 – £25000 for 12months to 25 years. It is a very common way to get capital for your start up or extra money for a project. It is however not always easy and business owners have to be prepared when applying for a loan. [Read more...]