5 Ways You Can Fund Your Small Business
Whether you’re starting up your business or looking to grow, funding is an essential part of creating a successful business. But with so many funding options available, knowing which to apply for can be confusing – and a little daunting!
In this blog post, we’ve outlined five different ways you can fund your small business.
We’ve previously discussed how crowdfunding can help your business, but the concept is worth mentioning again. With a variety of crowdfunding platforms to consider, a growing number of entrepreneurs have turned their attention to this method of financing. This is, in part, due to the fact that crowdfunding gives small business owners the opportunity to raise capital through the collective effort of a mass group of individuals as opposed to one single investor. It also allows members of the public the opportunity to support the business for as little as £5.
For some entrepreneurs, it is possible to fund a business through savings or other personal finance. Using your own money has its benefits – you’re not in debt or giving equity of your business – but the decision to self-fund your business needs to be thoroughly explored before any decision is finalised.
Angel investors are just another possible funding alternative. These are experienced business professionals who provide money to a business in exchange for equity (think Dragon’s Den!). However, while these individuals exist, they can be very difficult to find. Furthermore, it is important to add that, while angel investors review many business proposals, they only invest in a small amount of businesses.
If you need a significant amount of capital to fund your business, a small business loan can help. Established banks such as Barclays, HSBC and Lloyds offer business loans, with most offering loans from £500 up to £25,000. The government also has its own Start Up Loan scheme which is available to businesses less than 2 years old. Again, up to £25,000 can be borrowed, with a 1-5 year loan repayment term.
There are many different grants available for small business owners which you or your business may be qualified to apply for. For businesses based in the North East of England, the North East Growth Hub has a directory of available grants for both start-ups and established businesses. The UK government also have an abundance of grants available, supporting everything from business start-up to business growth. While the application process for a government grant can be long and a little tedious, they can provide the financial aid needed to grow or start your business.
Before applying for business funding, it is important that you review your options carefully. If you need help or support with business funding, get in touch with the PNE Enterprise team at firstname.lastname@example.org or 0191 230 6410.