If you are planning to launch a start-up but worried about funds, there is good news for you. The scenario is not at all bleak as you have been reckoning. And this is exactly what the write up will deal with- your options galore. So, take a look at the different avenues that are available and those that will keep your hope for start-up funding alive.
Opening a new business – The pathway
First and foremost, it is important to understand that starting your business is not a child’s play and it requires meticulous planning. In order to make the launch a success, draw up a business plan, the vision, mission of your company, your target audience, and of course the financial part. Assuming that the other aspects will be taken good care of, let us focus only on the funding aspect here.
More and more loan providers are willing to work with start-up companies. As such, they offer attractive terms and conditions on the funding options that they offer. Overdrafts as well as loan options are available from banks. However, in order to qualify for the same, your organization must fulfill the criteria first. And undoubtedly having a great credit history and past track record is a must. Also, the type of business model and plan you work out has to be discussed with the loan provider.
Restricting cost and expenses
Judicious usage of funds will definitely allow you not just to save but the amount of cash you will require to run the business will be restricted too. By all means, you will be able to do with only a lump sum and you may not require funding of a very high amount.
Grants from government and loans
Aside from exploring the options of short term loans, loans using collateral, you have various other options too. Regardless of the type of loan you are planning to apply for, just make sure the loan servicer is reliable and has been operating in the business for quite some time now and not fly-by-night companies.
You can try out SEIS or Seed Enterprise Investment Scheme. The biggest advantage in this case is you can avail tax benefits on the scheme. However, this might not be a good option if you have not started functioning. Your business has to be at least 2 years old to avail benefits from this scheme.
Alternatively, you can find out whether or not applying for Start Up Loans scheme is suitable for you. Way back in the year 2014 itself, you could avail cash funding up to £25,000 in order to start a business.
The government’s Enterprise Allowance scheme is aimed at helping start-ups too and you could try your luck here too.
Regardless of the target audience, types of products and services you are offering, what matters is whether or not you have clarity of thoughts, steadfastness, perseverance, patience, and above all a great cash backup, which will definitely be fulfilled by any one of the options mentioned above.