It has been a tough few years for the business community, especially for those smaller businesses with great ideas but frustratingly little funding. To make things easier there are various opportunities that may be available to assist with the financing of your business.
Grants and Loans
There is currently a wide range of funding available for businesses, both in grant and loan forms. Some are provided by Central and Local Government and some are provided by the European Union and other organisations. An application procedure will usually need to be followed and specific criteria met. This means that not all grants and loans will be suitable for all businesses. Examples of grants that might be available are the Grant for Business Development and the Selective Finance for Investment Scheme. These provide grants to entrepreneurs in specific sectors, that generate employment, to acquire capital assets.
Another example is the National DTI Grant for Research and Development Scheme, which offers grants to entrepreneurs engaging in research and development projects. Do your research and ask around, you may be surprised at the help that is available.
Enterprise Finance Guarantee (EFG)
EFG is a loan guarantee scheme. Through this scheme the Government provides guarantees for businesses that have been turned down by commercial lenders, due to lack of security or lack of a proven track record. The availability of this is dependant upon the lender being satisfied that the business can afford the loan repayments. There are also certain entrance criteria for the EFG, for example, the business must have a turnover of less than £41 million. If you feel that your business could benefit from this, again, do your research and make enquiries of potential lenders.
Tax Relief Schemes
There are various tax relief schemes aimed at encouraging equity investments in companies. Examples of these are the Seed Enterprise Investment Scheme (“SEIS”) and the Enterprise Investment Scheme (“EIS”). Again, not all of these schemes will be suitable for your business. If you can demonstrate the suitability of these schemes to an investor this may increase your chances of obtaining private investment. Ask your professional advisor for further information.
If you would like more information about what Druces LLP can do to help you, please e-mail us at firstname.lastname@example.org.