How do I find financing for a small business in the UK?
There are a number of options for finding financing for a small business in the UK:
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Bank loans: Many banks offer small business loans to help businesses finance their operations and growth. These loans may be secured (meaning that the business must provide collateral, such as property or equipment) or unsecured (meaning that the loan is not backed by collateral).
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Government grants: The UK government offers a range of grants and support programs for small businesses, including the Coronavirus Business Interruption Loan Scheme (CBILS), the Future Fund, and the Bounce Back Loan Scheme (BBLS). These programs provide financial support to businesses that have been impacted by the COVID-19 pandemic.
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Investment from angel investors or venture capital firms: Angel investors and venture capital firms provide funding to businesses in exchange for equity. This can be a good option for businesses that are looking for more substantial financing and are willing to give up a stake in the business in return.
We'd recommend starting with the PitchBuilder investor contact list, which you can download for Microsoft Excel.
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Crowdfunding: Crowdfunding platforms, such as Kickstarter or Indiegogo, allow businesses to raise money from a large number of people, typically through online campaigns. This can be a good option for businesses that are looking for smaller amounts of funding and are willing to offer rewards or perks to backers.
- Personal savings or loans: Business owners may be able to use their personal savings or borrow from friends and family to finance their business. This can be a good option for businesses that are just starting out and are looking for seed funding.
It is important to carefully consider the pros and cons of each financing option and choose the one that best meets the needs of your business. Be sure to research the terms and conditions of any loan or investment carefully, and seek professional advice if necessary.
