Business Finance

Funding Your New Business

Start-up funding is very difficult to come by with many new businesses seen as a too high risk. Whether you are starting a new business or wanting to buy an existing one if you have no equity from any other sources you will struggle to get a traditional bank loan. Last year alone only 1 in 5 applications were approved.

What options are available to anyone starting a new business or looking to grow an existing one.

1. Crowdfunding

Crowdfunding the new alternative way to fund your business idea You have a great idea, BUT for whatever reason your credit is not that great but you know with the right support you could be successful. However,  you think there is not much hope! RIGHT! ….. WRONG ,rewards based crowdfunding could be just what you are looking for. If you think you could be interested in crowdfunding, but now sure which one would be write for you you can find out more by clicking this find out more link. 

49 backers already ! Still 32 days to go! Check out the rewards based funding campaign to see how Zonecase have structured their rewards based campaign.

business finance alternative funding
Already raised £5409 / Goal £7134

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Rewards Based Crowdfunding

The alternative to traditional business finance, you offer rewards in return for money.

Rewards based crowdfunding offers an attractive fundraising option to business owners.

Equity Based Crowdfunding

Equity crowdfunding is the process whereby a large number of people provide money to a business in return for shares in the company.

Debt Based Crowdfunding

Investors lend businesses money in return for capital and interest repayment.

2. PAYG Business Finance

So if you are looking for a way to boost working capital, you can rest assured knowing that you are not alone. Noteworthy many business owners go through this stage in their business.

As the new generation of entrepreneur hits the world with their next innovative business idea. Through lack of information many business owners are still tied to the traditional methods of business funding.

1 in 4 of my readers will bank with one of the four leading high street banks. So when faced with your first cash flow problem it will be a natural reaction for you to turn to the bank for help and support.

Today there is no longer a one size fits all approach to funding the growth of your business

When you are growing a business one key aspect is FLEXIBILITY.

You need to think about the option of PAYG business finance line of credit. Just imagine you have a shortfall in working capital. Yet you do not want a business loan. What are your options! Well you could still pick up the phone to the bank manager

Or you could consider PAYG business finance unsecured or secured line of credit.

PAYG Business Finance

PAYG business finance enables your business to pursue opportunities quickly. Without the need to wait to build-up working capital reserves.

3. Startup Loans

Government Backed Startup Loans

need finance for business alternative business finance options

The startup loan is a personal loan, it is not a business loan. This loan will be attached to you personally and appear on your personal credit file. The loan will be means tested and you will need to provide proof of three month’s clean personal bank statements with the initial application. Find out more  and make an online application. However, if you have already made an application you will need to contact them directly.

EFG - Need a Business Loan but Have Little or no Security

The Enterprise Finance Guarantee (EFG) scheme is an effective way to obtain the required funding.  Most banks will turn down a viable business.

Due to lack of security or no proven track record in business.

  • If a business is viable.
  • The banks can use the EFG to approve loans that would not meet their normal lending criteria.
  • However, it must be pointed out that the final decision to lend lays with  the bank whom will confirm businesses eligibility.

4. Asset Finance

business finance 2015 Nissan NV200 Electric Van
Nissan e-NV200 Electric Van

We start off with transport

With the big push on low emission vehicles. You may want to consider the option of buying an electric van. Car dealerships and manufacturers can get grants to reduce the price you pay for brand new electric and hybrid vehicles. Find out what vans are eligible.