Funding Your Business

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Successful business owners are never happy just running their enterprises – or just having them to survive as we put it – they’re constantly looking for opportunities to innovate and grow, be it by developing new products, recruiting new staff or expanding and opening new premises.

One of the key questions we’re often asked by these ambitious business owners is, “Where can we secure finances?”. 

The traditional route to secure finances is to approach the bank manager. Not only does this require detailed business plans including financial projections, the process is usually subject to extremely strict criteria, often unattainable for entrepreneurs.

Moreover, grant funding is often limited to research and development and not available to start-ups. The good news is, that our collection of resources includes a number of alternative options, which can help you secure business funding.

A link we recommend checking out, to potentially assist you could be:

https://www.gov.uk/business-finance-support

Alternative finance providers:


Government backed schemes:

Enterprise Finance guarantee - government guarantees 75% of this loan to lenders.

 

Commercial bank initiatives:

RBS Funding for Lending Scheme - All loans approved in this limited fund will be fee-free and offered on a first-come, first-served basis. Loans lasting five years or less could also qualify for a 1% interest rate discount.

It is also worth looking at the Capital Enterprise website for the latest information on accessing funding and support for technology start-ups in London.

www.iwoca.co.uk and www.ezbob.com  provide short term lending to allow UK SMEs to purchase goods from China online.

For the under 30s:

 Over 30s:

Funding Circle:

  • This online marketplace for business loans matches borrowers with investors who want to lend in the UK and the US. It has a referral partnership arrangement with two major high street banks, Santander and RBS Nat West
  • www.fundingcircle.com

 Crowdfunding:

This is where an entrepreneur asks for a small stake in a business from a large number of people in return for incentives.

  • Kickstarter – a funding platform for creative start ups
  • Crowdfunder
  • CrowdCube
  • Indiegogo – a crowdfunding platform where people can create fundraising campaigns to generate contributions
  • Seedr – crowd funding for technology start ups
  • Buzz Bank – crowdfunding for social enterprises and charities

 Technology funds:

  • Barclays Bank has recently announced a £100m fund to help fast-growing technology businesses accelerate to the next level. The maximum amount it can loan is £5m over three years.

 Other banking providers for small businesses:

 Other banking providers for private individuals:

 For raising finance against invoices:

  • MarketInvoice – online platform for auctioning  invoices to a group of professional investors
  • Platform Black – online invoice discounter

 Peer-to-peer business lending:

Personal loans:

  • Zopa - people who have spare money lend it directly to people who want to borrow
  • Ratesetter – matching creditworthy borrowers with savers looking for a better return on their money

 Equity:

 Television programmes:

 Finance for social enterprises:

 Other:

KPMG is working with Entrepreneurial Spark, the world’s largest free business accelerator, to create a team that will deliver business advice and support to thousands of entrepreneurs across the UK.

Also have a look at btubenetwork.com

 

 We do endeavour to keep this page up to date so please feel free to drop us a line if you have questions.

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