Five ways to fund your start-up
Before looking at sources of funding take some time to be clear on what you want the money for. Will you use it for staff, equipment, premises or something else? Exactly how much will these things cost?
With this information in mind you can start to look at the most appropriate sources of finance for you which might include:
Loans are available from government-backed loan schemes and high street bank lending, credit unions and sometimes friends and family.
Grants are often specific to a particular geographic location, sector, or type of organisation and often have restrictions placed around what they can and can’t be used to fund. Providers of grants typically include Government departments, Local Councils, Enterprise Agencies, and sector-specific organisations.
Unlike other sources of finance, crowdfunding is all about a large number of people putting small amounts of money into your business. You create a campaign showing how much you want to raise and what it’s for, choose the best crowdfunding platform for your sector and reach your potential investors online.
- Asset Finance & Leasing
Being able to finance a piece of equipment or a vehicle for your business through regular monthly payments may be an alternative to funding the initial costs outright.
- Investment Finance
By selling part of your business to an investor you can benefit not only from their funds but also their expertise and contacts. There are several government schemes in place such as the Enterprise Investment Scheme (EIS) which provides tax relief for investors as an incentive to invest in your venture.