The Enterprise Investment Scheme (EIS) is designed to help smaller, risky businesses raise funding to fuel growth.
Early-stage businesses can find it difficult to secure investment, so the EIS was set up to encourage more investors to back fledgling businesses by offering generous tax-breaks.
To help you see whether the EIS could help you raise funding for your business, we asked award-winning chartered tax adviser, Jonathan Amponsah CTA FCCA to explain how it works. (more…)
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. (more…)
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. (more…)
– This is a promoted guide from Nationwide Corporate Finance
. Nationwide Corporate Finance offer rates from just 3.6% per year, and we specialise in business finance of all kinds. We have lent over £3 billon to businesses just like yours.
There are several ways to finance a business. These include bank loans, finance from independent lenders, and crowdfunding. Your capability of financing your business depends on convincing somebody else to invest in your idea and you. (more…)
Crowdfunding is often seen as an easy route to raising money, but a major factor often overlooked is that it only works for certain types of businesses.
This article explores what those businesses that suit crowdfunding typically look like, and for companies that don’t fit the mould, suggests some steps you can take to make your venture more attractive to crowdfunding investors. (more…)
Open Banking is here and is about to transform competition in the banking and funding arenas.
Since 13 January 2018 nine of the largest banks in the UK are governed by the new regulations introduced by the Competition and Markets Authority (CMA).
But what exactly is Open Banking, and how does it affect businesses across the UK? Here are five key facts you need to know about Open Banking: (more…)
“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. (more…)
There’s a huge variety of finance solutions available to small businesses these days, and each have their own pros and cons.
What works for one business may not work for another, and you may use a number of different products to finance your cashflow, short-term projects, or long-term growth plans.
Many companies find business credit cards useful for the short-term end of the spectrum, and while you wouldn’t necessarily use one to pay for larger purchases, they can be a good tool for day-to-day spending, expense tracking, and perhaps emergency cashflow needs. (more…)
PROMOTED GUIDE – This is a promoted guide from Funding Options – the free marketplace for business finance. Find the right finance for your situation, from dozens of the UK’s best lenders.
They might not have the catchiest name — but revolving credit facilities are one of the most useful types of business finance available.
Here’s everything you need to know about revolving credit facilities, and how they could help you fund your business. (more…)
Christmas can be a challenging time for many businesses, whether it’s your busiest time of year or a seasonal slump in trading.
Either way, lots of small businesses find that short-term finance can provide the boost needed to cover short term cash flow issues. Here are 5 funding options that can do this for you; (more…)
Invoice finance is an umbrella term for two distinct forms of business funding called invoice discounting and invoice factoring.
It’s likely you’ll have heard of these alternative types of business finance before, but without knowing exactly how they work, you might dismiss them as just another financial product that you and your business don’t need. However, there are real benefits to these products, so here is what every business owner should know about invoice finance. (more…)
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? (more…)
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 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? (more…)
Dealing with late payment can be tricky for small and medium sized businesses. Handle it wrong and a customer could be lost, ignore the issue and it can stifle business growth, have a huge impact on cash flow and even cause a company to go bust.
Staggering figures published in a government paper, revealed that small businesses spend around 130 hours a year chasing late payments, equating to an average cost of £1,500 per business.
The problem is endemic with two thirds of SMEs suffering according to research by the IOD, but follow this 12-Step plan and you’ll be able to minimise the damage late payment causes your business.
– 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?
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. (more…)
You may have heard the expression: ‘Revenue is vanity, profit is sanity and cash is reality’. If ever there was a philosophy which I passionately believe in, it is this.
However, there are three important financial measures, which we need to unpack in this expression. Let’s look at each of them in turn; (more…)
Business is a complicated old game sometimes. Just when you think you’ve got your head round one thing, you realise there’s another rule you didn’t know about!
Here’s a good example. Did you know it’s possible to get your business into serious financial trouble by selling too much?
New research by APS financial, the most proven digital UK challenger to banks, reveals what’s stopping UK mums from starting their own business.
With nearly half of UK mums saying they admire entrepreneurial businesswomen like Michelle Mone, Karren Brady and Liz Earle, the study unveils the barriers Mumpreneurs believe are stopping them from becoming the next ‘Baroness Bra’.
When you are starting out in business, you need to quickly grasp that the three key factors that determine a company’s financial success, or failure
Two out of three simply won’t work – you need to have complete control over these three crucial aspects, otherwise your chances of succeeding in business will be very limited. (more…)
Most companies will face some kind of cash flow problem at some point. Temporary cash flow problems or financial squeezes usually arise out of matters that are outside of the immediate control of the directors, but when problems like this happen it’s vital you take the right steps and move quickly to ensure the issue doesn’t escalate.
To help you navigate safely through troubled financial waters, we’ve asked Richard Saville of Corporate Financial Services to set out the 10 key steps you need to consider when your business is faced with a financial problem. (more…)
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. (more…)
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, so what options are there to fund a new business? (more…)
Understanding the numbers of your business is crucial to your success. If you have a grasp of key figures, and have an understanding of your business’ accounts you are more likely to make good business decisions.
Knowing your way around business accounts isn’t something that comes naturally to everyone, but if you are serious about your start-up, investing some time and effort to learn the accounting basics will pay dividends for all business owners.
It certainly did for Paul Oberschneider, who after facing up to his financial shortfalls turned his life around to become a successful entrepreneur, angel investor and author. Here, Paul shows the value of knowing the numbers behind your business; (more…)
When you are launching a new business, it’s fair to say that planning your finances isn’t the most exciting aspect of of being a startup. However, it is a crucial part of understanding whether your business has a chance of succeeding
And the good news is that there are now dedicated software, tools and apps that can quickly and easily produce financial forecasts for you.
So to help you understand more about how planning your finances can help your startup succeed, we asked Robin Booth of Brixx.com to share his experience with us;
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; (more…)
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. (more…)
The purpose of putting a company into administration is one that’s widely misunderstood by business owners. So to help de-mystify what’s involved and what it entails; here’s a guide to the company administration process; (more…)
One of the first things you will do when you set up a new business is to open a business bank account.
The easy thing to do is to use your personal bankers to act for your new business, but this isn’t necessarily the wisest move as there are significant differences between the services you will receive from the various high street banks.
Here’s some sound advice, together with some practical tips to help you get the most out of your bank, and choose the best business current account for your start-up, or small business. (more…)
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;
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?
When people talk about ‘gearing’ in a business, they are usually referring to one of two types;
- Financial gearing
- Operational gearing
Here’s a guide to what gearing is, and how you can use it to increase the returns your business makes;
For most business owners, selling their business is a once in a lifetime event. It’s also often the culmination of decades of hard graft so it’s important you get it right.
With so much at stake, we asked Clinton Lee of UK Business Brokers to help explain how you can get the best possible price from a buyer, when you are selling your small business; (more…)
Most individuals use the same bank for decades, if not for their lifetime. Many small businesses are the same, and stick with their high street bank even if they are missing out on far higher interest rates and lower bank charges which are available elsewhere.
Business owners that are exploring some of the newer business funding options, commonly referred to as ‘Alternative Finance’, can sometimes struggle to distinguish between ‘crowdlending’ and ‘crowdfunding’, not least because they sound remarkably similar.
Both describe ways of raising business finance, but there are huge differences between the two which need to be clearly understood to avoid any tears at a later stage.
So how do crowdlending and crowdfunding differ, and what opportunities do they offer start-ups and small businesses? (more…)