There are many different options to choose from when looking into financing your business.
However, the choice you make will depend on your plans and the stage your business is at.
The good news is that there are plenty of finance possibilities so it’s easy to find the best one to suit you.
There are three basic finance options:
You can get a loan which will have to be repaid over time, however interest does get added to this as time goes on.
You are effectively selling part of your company because you are giving an investor shares in exchange for cash.
If you are successful in getting a Government Grant you wont have to repay it. These are available at national and local level.
It’s important to consider the advantages and disadvantages of debt finance.
The pros are that the lender will not own any of your business and all profits you make will go directly to you.
However, with debt you end up paying more money back than you originally took out because of interest.
Whereas, equity finance consists of no repayments or interest; but you will lose some control over your business as investors have a say in any changes you wish to make.
There are many finance options for start up businesses, these include:
This is the most common way to finance a start up business- this is usually money you have saved.
Angel Finance is usually individuals that are willing to invest in developing businesses.
However, they will expect to receive a share of your business if they are to invest.
Start- Up loan:
This is a national scheme funded by the British Business Park, which help businesses that are starting out.
Some of the pros they offer are, low interest, no set up or early repayment fees, support and advice.
Finding finance for your business doesn’t have to be a scary process if you pick the option for you.
Our experts can help you find which finance is best for you and your business.