Business Loans From Smaller Specialist Lenders
If you are looking for UK business loans or funding for a new venture, there is an almost limitless range of options to get you started. From the more traditional means of applying at a bank with a good credit rating and collateral to raising finance through crowdfunding platforms like Kickstarter and Indiegogo.
This article aims to overview some of the main routes available to start your enterprise in Britain.
There are numerous types of funding available to businesses, from loans and funds from Banks and other lending institutions to government grants and those from industry bodies. However, the most common form of business funding is a loan.
A loan can be a generous startup loan or a more mature venture with more complex terms. The primary type of business funding you will come across is loans, but there are also some other options such as charities and venture capitalists that you may want to consider when trying to fund your new venture.
Business loans provide the most common funding point for new and established companies. Many types of business loans are available, including secured loans, which require you to pledge your assets as collateral to secure the loan. The most common form of security for a business loan is to pledge your property. Still, you can also use equipment such as computers and vehicles if integral to your business.
Smaller Specialist Lenders
There are a lot of loan companies that would love to help you. It can be overwhelming at first if you don’t know much about business loans. There are quite a few different types of small business loans and smaller specialist companies that may be able to help, so it’s worth looking at what is available.
A business loan typically comes with a high-interest rate, but it can be beneficial if you get a business loan from the right provider. It can help expand your business and give you the startup capital you require for your new venture.
A business loan means that you have secured financing for what could be a significant investment, so it is worth making sure that the company you are applying to has a good record of repayment loans.
As with any loan, there is a chance that you will struggle to repay the bank on time, so if it’s not for you, take a look at our list of alternative small business loans.
Business Loan Rates and Payments will differ from person to person depending on how much money you can afford to borrow. Larger companies may require strategic investment plans, which vary from the individual business. It is worth thinking about whether or not your company has the capability of maintaining its interest rates and payments on such a loan.
International Funding Sources for UK-based businesses is almost limitless. However, one of the most popular methods is through crowdfunding platforms such as Kickstarter and Indiegogo. Both sites offer a variety of funding opportunities, from donations to loans to equity (a percentage of ownership in the company) investment.
If you are looking to raise capital through crowdfunding, it is essential to remember that your business must have a clear goal and plan of action. It will be more challenging to raise money if your business is not established correctly, so make sure you have a reasonable budget and plan, including some form of collateral. Great publicity will also help your campaign greatly, so think about how you can promote your project – this could include getting the word out on social networking sites.
Venture Capitalists are professional funders that invest in small companies. They provide seed and bridge finance to new businesses, funding them at the start and then once they are up and running, helping them fund future growth with debt or equity finance.
The main attraction of venture capital is that you only need to give them an equity share in your business, whereas a bank only wants interest. However, there are often conditions attached to accepting investment from venture capitalists, including signing over a large share of your company.
If you are looking for Venture Capital funding, be aware that they often ask for at least 20% ownership in the business they invest in.
It’s not all about money – if you are looking to boost your business skills or learn something new, several business training scholarships are available. For example, the Victoria & Albert Museum offers an award of £5,000 to help Royal College of Art designers develop their own textiles company. If you fall into this category, check out some of the other scholarship opportunities that are currently available.
The British Council offers grant and funding support for UK companies wishing to market and export goods abroad.
Funding for Your Startup in the UK
Business Funding is not just about getting the right amount, but also the right kind. There are many options available to you, so here are just a few of the ones we have outlined above. It has never been easier to get your business off the ground in Britain. There is no better time than now to get started and see what you can achieve in this country.
Need some advice on funding options? Speak to your local Enterprise Agencies – they offer free advice and guidance on finding funding for your business.
Funding options discuss obtaining business loans with bad credit in more detail here.
Other useful links about loans:
How to Get a Startup Business Loan
5 Benefits of a Business Car Lease
How to Get a Business Loan
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: