You have started a business but you’re short of one very important thing… money. Having an extra source of capital can help your business in a number of ways: You could hire new staff, acquire a new office space, build a new product, go live with a marketing campaign, and of course much more. But where on earth do you get funding from? Finding the right place for this can be tricky. With this in mind, we have done some investigating to give you an idea of the most popular funding routes available to you and your business. Read on to find out more.
Go ‘old school’ with a Bank Loan
Banks are the most well known (and well established) source of funding out there — but actually getting a small business loan can be far from straightforward. Terms are often strict and banks will usually expect a quick ROI (Return On Investment), not an easy thing to deliver for a new business trying to grow.
If you do decide to go down this route ensure that your grasp of the numbers is spot on and that you have a thorough business plan. Banks will want to see a well-conceived plan that clearly outlines how you intend to spend the borrowed money and how this will ultimately help your operation.
Get a new kind of loan with Start Up Loans
Start Up Loans was launched by the government in 2012 and has already issued over £250m to small businesses around the UK.
Their terms are generous — you can take up to five years to pay back a loan with a fixed rate of interest, and loan sizes can go up to £25,000 — with the average loan size being around £5,500. As well as this, start up Loans offer a ‘personal’ touch by giving loanees access to business mentors who can assist with business planning and cash flow………. for complete article please Continue reading