How To Get Funding For Your Startup Business
There are a number of ways to acquire funding for your start-up, or small business, including government grants, angel investors, Trusts, and bank loans.
I have written this quick post to help you access the best choice for your start-up, or established business. Many options could save you money, lower start up costs, or help grow your business by providing support, and the funds you need to pay for costs involved with your organisation – such as, equipment, and tools, or professional services like accounting, or coaching.
Use it as a guide, it is not an exhaustive list but includes sources like, government grants, Trusts, and loans. Hopefully, it will help you pick the right choice for your needs.
Government Grants
There are a range of government grants for new businesses in the UK – from saving money on premises and rates, to buying cheaper plant, IT equipment, or paying for professional fees like accounting or coaching.
Most small business grants are awarded to help launch a start-up, or new business – with the aim to generate jobs and stimulate the economy.
Government grants can often be complex with lots of processes and stages, and each grant could have its own requirements and criteria for applying.
Grants come in a number of forms, and there are over 100 government grants for small businesses available across the UK. However, achieving a small business grant from the government can be a challenge, but don’t let that put your from applying.
Here’s my guide to applying for a government grant.
1. Where to find government grants for new businesses
If you’re starting a UK business, I would recommend beginning with the useful – Business Finance Support Finder.
Link below:
Business Finance Support Finder
Government grants are available for UK businesses, as well as via the Welsh and Northern Ireland Assemblies, and from the Scottish Parliament.
The Welsh government has access to a similar list of grants at its, Business Grants website.
Link below:
Welsh Government Business Grants
Those of you who are situated in Ireland, the Enterprise Ireland has access to funding for small businesses, up to larger enterprises.
Link below:
And for those of you in Scotland, the Scottish government’s Funding Opportunities website provides access to over 600 grants and funding options.
Link below:
Scottish Government Funding Opportunities
2. What type of new business grants are available?
Generally, government grants come in the form of a direct grant, and are available in all kinds of forms – from reduced costs and free equipment, to cash awards to help your new business grow.
Direct grant – this is money given to your new business to cover start-up essentials such as training, or coaching, investment in equipment, or reaching new markets. Some grants will expect your business to provide 50% of the value of the grant. Depending on your business sector funds are available up to the value of £500, 000.
3. How do I apply for a government business grant?
Check you meet the general terms, and criteria before you get too far into the application process because each scheme is different.
Some grants can be very specialist such as, creating a specific type of business, or building a business that will help regenerate a local community.
If applying for a new business grant, here are some tips you may wish to consider:
- Talk to the grant body – Communicate with the grant awards body to assess your chances of making a successful application.
- Read the grant objectives – Take a minute to learn why the grant is being awarded, and what it aims to achieve. For example, hiring staff from a local community, or developing environmentally friendly products. To stand the best chance write your application referring to the objectives as closely as possible.
- Focus on the grant use – Grants are usually awarded for a specific project such as, buying IT equipment, or funding a business telephone services installation. Use the application to show how this will help grow your business, and how others will benefit from it too – rather than on the equipment alone.
- Have a great business plan – The awards body for the grant will expect to see, a professional business plan and, if you’ve started trading, examples of your business position, and balance sheet.
- Check your funding – Most grants will look to match the amount you’re willing to invest. For example, if you’re seeking a grant of £20,000 then make sure you’ve got £20,000 available.
- Apply early – Grants may have a limited pot of money to invest, you have a better chance of receiving a grant, if you apply when a scheme first launches. In the early stages, there’s more money in the pot available, and less competition to get it.
4. Are there other sources of Business funding other than the government?
Alternatives to business grants
Business grants may not always be available, or suitable for your business.
However, there is good news. There are alternatives to business grants, such as:
- Equity finance – Equity finance is when you sell a share of your business, in return for finance. Some equity finance schemes, like the Seed Enterprise Investment Scheme, offer up to a 50% reduction in income tax on investments made in new businesses up to £100,000. Businesses have to be less than two years old and have fewer than 25 employees.
- Loans – Loans with lower interest rates and generous terms than can be found via other lending sources. Backed by the government, the Start Up Loans scheme, offers personal loans of up to £25,000 with a 6% interest rate. I have recently been awarded a business loan from the Start Up Loans scheme, with the fixed low interest rate, it was worth it.
- Purchase order finance – This financing option allows businesses to pay their supplier’s upfront costs before receiving payment for an order, ensuring a smooth delivery process. Unlike other types of funding, Purchase order finance is available to businesses of all sizes, including new startups and small businesses.
- Trade credit – This type of short-term, unsecured debt allows a business to borrow goods or equipment from a supplier with an agreed-upon deadline for repayment. One of the best things about trade credit is that it’s usually interest-free, meaning you only have to pay back the value of the goods you purchased without any extra fee.
- The Prince’s Trust
I received my first business loan with The Prince’s Trust 2024 and went on to become and enterprising award winner., I highly recommend giving them a go. They are a great source for help with funding, especially for the younger generation, if you’re under 30 give it a try! - Funding circle – Business Loans. They’ve helped over 140,000 businesses borrow £16 billion to take their business further.
- Small Business. Have launched their all-in-one business membership – Small Business Pro.
5. How do I find funding for businesses in my area?
There are sources of business funding for specific areas of the UK, for example, England, Wales, and Scotland. Also, to narrow the search down even more, some councils and finance providers have funding for businesses in their county. The best thing to do to find sources of small business finance is to look online, or visit your local library, or council offices.
To give you an example of places you might find to help, and fund your local small business in your area, I have listed a few websites to visit if your business is based in London, or East Anglia below.
For business funding and support in Norfolk:
Breckland – Breckland Council – Business Growth.
Link below:
Broadland And South Norfolk – Business Grants and Funding.
Link below:
Braodland Business Grants And Funding
Kings Lynn and West Norfolk – Business Support Programmes and Funding.
Link belwo:
North Norfolk – UK Shared Prosperity Fund and Rural England Prosperity Fund.
Linki below:
Norwich – Support and Advice For Businesse.
Link below:
For business funding and support in Suffolk:
Babergh and Mid Suffolk – Mid Suffolk District Council – Grants and Loans.
Link below:
Mid Suffolk Business Grants And Loans
East Suffolk – Suffolk Means Business – Business Funding.
Link below:
Ipswich – Business Grants, Loans, and Other Funding Schemes.
Link below:
Ipswich Business Grants And Loans
West Suffolk – Find Business Funding-finder.
Link below:
West Suffolk Business Funding Finder
For business funding options and support for businesses in Essex:
Essex University – Funding opportunities For Businesses.
Link below:
Essex University Business Funding Opportunities
Let’s Do Business Group – Access Business Finance up to £150K.
Linik below:
Let’s Do Business Group – Business Finance
South East Business Hub – Business Grants – Essex, Southend, Thurrock.
Link below:
Backing Essex Business – Business Finance – Borrow Up to £150K For Your Business.
Link below:
YOUR THOUGHTS
What’s your thoughts on applying for small grants and loans in the UK? Is there anything listed here that you are pleased to read? Let me know what you think.
How To Go Forward
Remember, my coaching programs are here to help you navigate through challenges, learn from your experiences, and prepare for future endeavours.
