How to set up and run a small business
When it comes to start-up investment, the UK has some of the best tax relief schemes anywhere in the world.
The Enterprise Investment Scheme (EIS), along with its earlier-stage sibling the Seed Enterprise Investment Scheme (SEIS), offer protection of investments in UK start-ups. If the business fails, investors can claim up to 80% of the investment as tax relief against their income tax bill. Continue…
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A form of finance which is rapidly gaining popularity in the UK business market is bridging finance. Around £750 million was borrowed through the means of bridging in the year 2011, since then it has only gone up where in 2016, this number went up by £4 billion.
The way bridging loans work is that they allow a business (or an individual) to access large sums of money within around 2 to 4 weeks. Continue…
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One of the biggest obstacles to growth for start-up businesses is investment. Investors are often reluctant to commit their money to a new business with a promising idea but no track record of success.
Fortunately the Government lent a helping hand in 2012, and introduced the Seed Enterprise Investment Scheme (SEIS) to help smaller, riskier companies attract investors willing to take a punt on a bright idea becoming a successful business. Continue…
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Any time is a good time to start a company, so said renowned American angel investor Ron Conway.
That may be true, but how easy is it to find the necessary funding?
The answer largely depends on your understanding of how fundraising should be done.
Venture capital money going into technology companies in the UK is at an all-time high. A year post-Brexit referendum, British tech firms attracted £2.4bn in funding.
To date this year, UK fintech companies alone have seen £825m of VC investment.
So, what do investors look for in tech start-ups and how do you get a slice of this funding for your technology venture? Continue…
Getting finance for your business is no longer just a case of approaching your high street bank manager and asking for a loan.
The market is now much more varied, and boasts a huge range of products which have been tailored for more specific purposes. This means that depending on your requirements, it’s easier than ever to find funding that fits your business – if you know where to look.
Asset finance is one such funding solution, but what exactly is asset finance and is it a good option for your business? Continue…
Everybody understands that starting up a business from scratch is not a simple process or an easy challenge to take on.
Regardless of how lofty your ambitions are or whether you’re aiming to establish yourself as a sole trader or as a the boss of a burgeoning new enterprise, finding access to initial and early-stage sources of finance is a vitally important step along the way towards sustainability and success.
Here’s a look at some of the most commonplace and most viable routes to finance currently available to startup businesses and the entrepreneurs behind them.
PROMOTED GUIDE – This is a promoted guide from Funding Xchange – the business funding marketplace where lenders compete to fund your business. Get Funding Now!If you have approached your bank and found it difficult to secure the funds your business requires, you’re in good company. Banks are declining up to 50% of loan requests from some smaller businesses.
Banks’ lending decisions have very little to do with you or the prospects of your business. And their outdated processes and high costs of capital make it difficult for them to lend to smaller businesses.
Business owners are also being frustrated by the inability of banks to provide flexible forms of credit to businesses. This is highlighted by the fact that the availability of business overdrafts, long a favorite tool for businesses to smooth cash flow, has shrunk by more than 30%.
So where else can you get funding for your business?
There are lots of things to think about if you’re considering taking out a business loan.
The UK’s business lending market includes a wide range of providers offering subtly different types of business loans. Some are aimed at a particular type of business, or companies of a certain size or those operating in a specific sector.
With a wide range of business loans available it’s important to first get a basic understanding of the different options you have when it comes to borrowing money to fund your business.
Here are some of the key considerations you need to bear in mind when sourcing a business loan for your firm. Continue…
Since the recession of 2008/2009, there has been a significant reduction in the ability of banks to lend to British SMEs.
Whilst mainstream finance is still great for some businesses, many banks now have lending criteria that small businesses are unable to fulfill.
Fortunately, ‘alternative finance’ can offer a viable substitute for entrepreneurs looking for innovative and flexible ways to fund their business growth.
But before blindly assuming alternative finance is the answer to all your financial woes, there are six things you need to understand before you approach an alternative finance provider looking for funding. Continue…
Borrowing money from a bank to finance your business is a lot harder than getting a loan to buy a new car or to improve your home.
Banks have a number of tough rules that you need to know before you approach them for a business loan, and these rules have become even more stringent as a result of the credit crunch.
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If you are looking to start a new business, there is a good chance that you will need some funding to get it off the ground. Most businesses will have start-up costs, whether it’s securing premises, stock, equipment or hiring people, and they will all need paying for.
Some people might have savings, or a redundancy payment, they can use to fund their start-up, but others will need to find funds before they can launch their new business. However, as many prospective business owners find out, getting start-up finance can be difficult.
For someone who just wants to start their own business, negotiating the finance maze can be confusing and take up a lot of valuable time. So to help increase your chances of success, here are the answers to some common questions on how to fund a new business; Continue…
Many small business owners don’t know about the Bank Referral Scheme, but it represents a significant milestone for business funding in the UK.
But what exactly is The Bank Referral Scheme, how does it work, and how will it help businesses? We asked Conrad Ford, Chief Executive of Funding Options, to explain; Continue…
You have a great business idea and you’re finally ready to make it a reality. However, the next obstacle you need to overcome is to find the funding you need to get your business off the ground.
In recent years, the advent of alternative finance has brought startups new funding options, and driven an explosion in the number of entrepreneurs raising money through crowdfunding. Specialist crowdfunding websites have made it possible for anybody with a business idea to reach out to potential investors. However, crowdfunding success isn’t guaranteed, no matter how good your business idea.
If you’re thinking of raising money to kick-start your business through a crowdfunding campaign, there are some key steps you need to take before you launch your campaign. With so much at stake, we asked Indiegogo to reveal the 6 things you need to do and know before you launch your crowdfunding campaign;
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Young businesses and start-ups that are looking to raise funding have a dizzying array of choices nowadays. In fact, there has probably never been a bigger range of places to go for early-stage finance, from crowdfunding and angel investors through to government-backed start-up loans and P2P lenders.
But before we take a look at the options in more detail, it’s important to think about what sort of funding you’re after for your business, and what you’re prepared to offer in return. The basic division here is between equity and debt. Continue…
When it comes to selling a business, the most important question you need to ask is – how much is it worth?
There is no single formula that can be used to precisely value every private business. The seller will want to drive the price up, and potential buyers will want the opposite.
Although there are relatively easy ways to value certain parts of the business – such as stock, fixed assets (land, machinery, equipment etc.), there will very probably be a sizeable intangible element to the value of a business.
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The Albion Growth Report – a study of 1,000 SMEs which aims to explore the factors that help businesses grow and the issues that hold them back – has found that the popularity of bank loans and business overdrafts is declining.
Instead, business owners appear to be turning to equity finance and other long-term financing options in place of the traditional bank sources.
One of the biggest challenges start-ups and fledgling businesses face is securing the funding they need to realise their potential.
A majority of business owners feel that finding finance is difficult in the current climate, and in particular, that banks are reluctant to provide business loans at competitive rates.
So to help you maximise your chances of getting that all-important business loan, we asked Rishi Khosla, the CEO and co-founder of OakNorth Bank – a bank that specialises in lending to entrepreneurs and growth businesses – to share his valuable insight and personal experiences with ByteStart readers;
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If you need more finance to grow your business, there are a number of options which you might wish to consider. You could turn to your own personal savings, ask family members for help, get a bank loan, issue shares, or speak to some business angels or venture capitalists.
Or you could consider peer-to-peer (P2P) lending.
P2P lending is fast becoming the norm for businesses needing finance to get an idea off the ground or raise the capital necessary to expand and take projects to the next level.
But whilst it’s become a more common financial avenue for SMEs to pursue, it’s still not as well-known as it could be. According to a 2014 Nesta Report, only 44% of UK small businesses have heard of P2P lending.
So what exactly is peer-to-peer lending and how can small and growing businesses use it to finance growth?
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When people talk about ‘gearing’ in a business, they are usually referring to one of two types;
Here’s a guide to what gearing is, and how you can use it to increase the returns your business makes;
The award winning Cashplus Business Account is specifically tailored to the needs of start-ups and small businesses. Find out more, or Apply Now
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