The 3 Best Ways to Get Finance for a New Business
Despite the doom and gloom on the high street, many Britons are still optimistic about the future and it seems that entrepreneurs haven’t been deterred from chasing their dream.
According to recent reports, a new wave of young, business-savvy graduates has swept the nation under the Government’s Sirius scheme. Entrepreneurs from across the world have been given a 12-month financial support package which offers up to £48,000 to set up in the UK.
Lord Livingston, the Trade and Investment Minister, said: “The UK is one of the best places in the world to become a successful entrepreneur and we’re committed to helping talented entrepreneurs from around the globe to build their businesses here.”
It’s fantastic that so many entrepreneurs are setting up new ventures here but finances are tough these days and setting up business costs substantially.
So, here are the 3 best ways to secure finance:
You can get a small business loan from various banks like Barclays and NatWest. Amounts can vary though and if the thought of a loan scares you, you can also apply to The Prince’s Trust if you’re aged between 18 and 30.
Also, try to get a fee-free overdraft, at least for the first year!
- Raise some revenue
Can you sell anything to raise some revenue? There are some websites that allow you to get money against some of your assets. So if you have a car or any jewelry you can sell, this may help you get started but be careful because if you go bankrupt you risk losing it all.
Elsewhere, you could borrow from a loved one or take a loan out against your house but again, you risk damaging your relationship and losing your home.
Can you get a credit card? The Barclay card has 0% interest for 29 months, the Tesco Club card has 0% for 16 months and M&S Bank has 0% interest for 15 months.
As aforementioned, the Government has launched the Sirius Programme which allows you to get financial support and visa endorsement. If you have a bright business idea, why not apply? You get to keep all your equity!
On the other hand, there are many other grants available like the Community Development Finance Association (CDFA). A Community Development Finance Institution provides capital to businesses and individuals that struggle to get money from high street banks.
There are also grants by The Department for Business, Innovation, and Skills as well as The European Union. Click here to find out what support is available near you.
So there you have the top 3 ways to get finance for a new business venture. Times are tough but if you have an idea for a new business, there is a way to make it come true.