Posted by Simon Misiewicz on 15th May 2013
Are you looking to raise some finance to help you start or even grow your business?
Have you been told “No” by the big banks?
It can be disheartening when you fill in all the forms to apply for funding, only to be rejected.The main banks wish you to have the following in place before giving you serious consideration to financing your business:
- Three years of profitable growth.
- Solid balance sheet so that their loans can be repaid by selling the assets of the company.
- You have a solid business plan outlining how the money is to be used and how the money will be repaid.
This can provide you with a headache and may even stop you from applying for finance.Fortunately there is some very good news on the horizon……Alternative banking options
Currently, 85% of all business loans are still handled by the big four banks.
Now three new lenders — Market Invoice, URICA and Beechbrook Capital — will share more than £30 million of government funding offering SMEs alternatives to traditional bank lending.
Market Invoice allows you to raise funds by selling your individual invoices to a pool of investors.It has been awarded £5 million. URICA is being allocated £10 million.
Business secretary, Vince Cable, said:”A lack of access to finance is still choking off too many small businesses, preventing them from growing, taking on new staff or investing in new equipment. Today’s £30 million announcement is an important boost for non-traditional lenders with creative and innovative solutions.It will increase competition and create a more diverse and balanced market for business lending.”
Start Up Loans
It was confirmed in the budget report that an additional £30m will be raised to help people start and grow their business using the Startup Loans Scheme.
Nick Bunting, CEO, The Prince’s Initiative for Mature Enterprise
“While we also welcome further funding for the Startup Loans scheme, supporting 18 to 30 year olds to start their own business, we would like the government to begin new initiatives to help people over the age of 50 to become self-employed.Mature people are crying out for employment opportunities and if they are provided with the same support to start-up new businesses as their younger counter-parts, they could make a lasting impact to the UK economy.”
To date StartUp loans have helped over 2,000 businesses to get started. Would you like to be one of them?
Chairman James Caan said: “Whilst we are well ahead of our target numbers, I believe that we are only scratching the surface. 2,000 young, ambitious and highly motivated people have taken their future into their own hands.At the moment 40 people a day are choosing to start their own business thanks to Start-Up Loans.”
If you are looking to raise finance we can help you write up a business plan for FREE.We want you to succeed and if you are able to raise finance we will even set up your limited company for free too. How good is that?
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