Finance options for new businesses
The most suitable finance option for your business depends on many things, including:
- How much funding you need
- Your current business revenue or if you're a new business
- Whether or not you're willing to offer personal assets as security this can make it easier to get funding but is risky if you're not able to maintain payments
- Whether or not you own a business property this can make it easier to get funding
- Whether or not you're willing to sell shares.
A bank loan is far from the only way that you can raise money to fund your startup business. For some businesses, particularly new riskier ventures, equity investment raising capital through the sale of shares in a business may be most suitable. For equity finance, there is a growing number of business angels prepared to back new businesses.The government provides generous tax relief to investors who want to support new businesses.
For less risky types of businesses, debt finance may be more appropriate. If you are struggling to obtain a loan to start a new business, you may wish to consider applying for a start-up loan. For alternatives to the high street banks for both equity and debt finance you could consider raising funding through alternative finance providers such as peer-to-peer lenders or crowd funding platforms.
Click here for more information
Whether you're taking the first steps or have been trading for a while and looking to grow, a Start Up Loan can help you achieve your business goals with:
- A loan of up to £25,000, at fixed 6% interest p.a.
- Free mentoring
- Exclusive business offers to help your start up
- Support with your business plan and cash flow forecast
For more information click on either Start-Up Loans or the image to the right.