Photo by Suzy Hazelwood from Pexels
It can be tough when you want to get started in business but don’t have the money to invest in it. Most small and medium-sized companies deal with this, no matter what the field is. But don’t despair. There are many funding options in the UK that go beyond the traditional bank loan.
That’s because the UK government seeks to make a good environment for startup companies that are looking to break into business. Therefore, simply doing a little research and finding exactly what you need to successfully get going, you can make your business a reality. What’s more, you’ll find many private and government-subsidized funding options that won’t drown you in interest debt. Here are a few of the alternatives.
RELATED ARTICLE: MISTAKES INVESTORS AND BUSINESS OWNERS MAKE
Small Business Research Initiative
Providing contracts and funding for businesses to do research and development on new products and services for the public sector, the small business research initiative aims to fund ideas that are innovative and will enhance public services. According to MoneyPug, a site where you can compare UK personal loans, this initiative can help people solve specific problems.
In short, any business is eligible to apply for a small business research grant. Initial funding is between £50,000 and £100,000. Further funding is available if you need it to develop the project further.
The Prince’s Trust Grants
Since 1976, the Prince’s Trust Grant program has been dedicated to rendering financial assistance to young entrepreneurs. This exclusive funding option in the UK provides mentors and financial backing for young people to starting businesses. Individuals from 18 to 30 years old can apply. The grant offers £1,500 for an individual, while a business group grant can be up to £3,000. Also, a marketing grant of up to £250 is also available to help evaluate the market.
Among other funding options in the UK are government grants for small businesses. It’s important to note that the grant providers—the Scottish Parliament, the Northern Ireland Assembly, and the Welsh Assembly—each have their own processes and criteria for applying.
However, each also offers a proper avenue for business finance and support. Their tools allow you find funding opportunities based on your location, size, and type of business.
Research and Development
The grant for companies that focus on research and development provides cash each year. Therefore, when your startup is focused on development, this grant is for you.
While the paperwork is complex for these funding options in the UK, there are also expert agencies that can help you make sure your chances of being approved are high. This program allows you to claim up to 32 percent in development costs, including the expenses for the contractor and staff.
UK Export Finance
This funding program helps UK exporters by underwriting bank loans, which makes it more likely that banks will offer financing. You must be a UK company offering products and services abroad to be approved for these funding options in the UK.
Also, the financing grant is helpful to UK exporters for raising bonds based on tender and contracts, as you will also be able to access capital. Therefore, if you’re interested in exporting goods, this is a great way to secure funds.
Grants that focus on apprenticeship offer funds for training that meets the needs of employers. For example, it takes one to four years to finish practical training with on-the-job learning. National apprentice services may provide funds for job-based training for youths aged 16-18.
It depends on your business area, but this funding option in the UK can begin at 100 percent. Also, you could access grants of up to £1,500 for ten employees in the age range of 16-24.
Smart Grants provide funds for startups that are trying to create significant technological and scientific breakthroughs. Therefore, if you are doing research in these areas, look into the three kinds of Smart Grants that are available. Proof-of-market and proof-of-concept grants will match 60 percent of funds at £25,000 and £100,000 respectively. They will also match 45 percent of funds at £250,000.
It depends on the stage of your company, what you want to develop, and finances, so apply for the right level of Smart Grant. For example, early stage businesses are eligible, especially if they have growth ambitions in engineering, science, and technology.
Look for Funding Options in the UK for Your UK Startup
Whatever your business is into, you can find funding options in the UK, including a specific grant or a general funding opportunity. So get investments for your startup that will help you overcome the initial hurdles. Do your research and you will make your concept a full-fledged business.