Hello everyone. All early stages companies or enterprises need to have access to finance. How that finance is secured will vary on the nature of the company or enterprise and how it is structured.* There are a number of funding sources available – we have listed 6 below.
1. Funding Central
Funding Central is a free resource for charities, voluntary organisations and social enterprises. We list thousands of funding and finance opportunities, plus a wealth of tools and information supporting you to develop a sustainable income strategy. Visit the Funding Central website here.
2. Start up Loans
Start Up Loans is a government initiative providing funding, mentoring and support to entrepreneurs. The scheme will lend up to £15, 000 to entrepreneurs and provides an alternative funding source to banks and business grants. You can find out more about Start up Loans here.
3. Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies to raise equity finance by offering a range of tax reliefs to individual investors who purchase new shares in those companies. You can find out more here.
4. Enterprise Investment Scheme (EIS)
Enterprise Investment Scheme (EIS) offers tax reliefs to investors in higher-risk small companies. The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies. You can find out more here.
5. Enterprise Finance Guarantee loan
The scheme is open to businesses with an annual turnover of no more than £41m, which ensures plenty of scope for start-ups and early stage small companies. Almost all sectors are covered too. The only sectors which are not eligible for Enterprise Finance Guarantee funding are coal, forestry, fisheries, transport and agriculture. You can find out more here.
6. The Business Finance Partnership (BFP)
The BFP aims to ease the flow of credit to businesses in the UK by helping to diversify the sources of finance available to them. You can find out more here.
We hope you have found this information useful. In a later post we will focus specifically on crowd-funding opportunities – an area that deserves a dedicated post. If you have any questions relating to this post feel free to give us a call on +44 (0)207 148 6720 or email via firstname.lastname@example.org to start the conversation.
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Impact Hub Westminster Team
* For advice on setting up a social enterprise click here.
** Sources – Various government websites linked to in each paragraph.