City : Enterprise Centre : Finance and Funding

Enterprise Centre

How do I Finance my Business?

money.gif  While writing your business plan you will have thought about financing your business and creating a budget.

money.gif  You may not be able to finance your business yourself and, generally speaking, this isn't a good idea - it can be a real struggle to fund your business and pay your living costs!

Here are some of the places that you could find funding for your business and what they're best for:

  • Best for private funding: banks / building societies


    Private funding will involve a bank or building society who are able to lend you a specific amount of money in order for you to start up your business.

    This route has advantages and disadvantages: bank terms and conditions can be complex, there are likely to be high repayments BUT you will be solely in charge.

  • Best if you've been turned down by a bank: Frederick's Foundation


    Frederick's Foundation is a charity which offers finance and funding to individuals who want to start-up their own business providing they have already been turned down by a bank.

    The charity also provides considerable support to your business along the way, not just money; BUT remember that in order to use their services you must have already been turned down by traditional private financing sources.

    Contact the Frederick's Foundation for more information.

  • Best if you are currently unemployed: The Prince's Trust


    The Prince’s Trust can offer financial help to those 18 - 30 years old with start-up business grants or grants to support you in developing your education.

    If you’re aged 18-30, unemployed or working fewer than 16 hours a week and have a business idea, the Enterprise Programme can help you decide whether self-employment is right for you.

    Contact Prince’s Trust for further information.

  • Best if you have a slow growing business and want to pay low interest rates: Grants


    There are a number of grants available for setting-up your own business that either do not require you to pay any funds back, or have a lower rate of interest than traditional lending at banks.

    You can search for specific grants on the GOV UK website and there is information and advice on getting a government grant available online.

    If you are interested in setting up a Childcare Business there are specific grantsavailable.

  • Best if you don't mind sharing your business: Investment Finance


    Investment finance involves selling part of your business (known as a ‘share’) to an investor - this may even be a family member or a friend.

    You can then invest their payment in to the business BUT the investor will take a share of any profits or losses that the company makes.

    There are many advantages - the investor could bring a new skill set or experience and there will be no interest rates to pay - but also disadvantages - it can be demanding and you will have more people to consult regarding certain business matters.

  • Best if you want a loan and mentoring: Government Start Up Loan Scheme


    Start Up Loans are part of a Government scheme to help young people thinking about getting into business and to support a new generation of budding entrepreneurs!

    You can borrow from £500 to £25,000 with a fixed interest rate and get quality business mentoring to help kick-start your business.

    You can get more information on the Start-Up Loans website!

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