How To Get Financial Help For Your Business
The UK could be poised to enter a recession in the near future after the economy recorded negative growth in April for the first time since 2020.
According to the International Monetary Fund (IMF), the UK is also poised to record the slowest growth of the G7 richest nations through 2023, with the region’s growth forecast expected to fall to 0.5% (down from the original prediction of 1.2%).
Because of this, businesses may be considering new and accessible funding options to help consolidate their position or drive growth in the near term. But what steps can you take to get financial help for your business?
What Are The Most Popular Funding Options?
In truth, you’ve never had more options in terms of how you seek out finance from your business, with more flexible borrowing options having evolved since the great recession in 2007.
The most well-known lending option remains through banks, which will offer secured loans that usually use a business asset as collateral. However, many firms lack the resources or assets to secure such funding and often turn to higher costs but more flexible options to achieve their objectives.
Many of these options are unsecured, including crowdfunding and peer-to-peer lending. Such options either require you to effectively sell equity in your business or borrow at a higher rate of interest, so it’s important to make an informed decision based on the stage and scale of your venture.
In some cases, you can also seek out venture capitalist investment, but this may require you to showcase a track record of performance and revenue.
Check Out What Government Support Sources Are Available?
There are also government and public provisions available for businesses, with the gov.uk website serving as a single point of access to all government services and information.
Such resources can cover everything from providing information and guidance on launching a new business to your statutory rights and obligations as an employer. It also includes the ability to search for support using the platform’s business finance and support bar, which can unlock funding and grant options for entrepreneurs.
The latter is an interactive tool that can be searched through a number of different filters, including sectors, business size and location. This way, you can tailor grants and loans to suit your needs while also assessing mentoring and consultancy services.
The National Business Support Helpline is also a key component of the government’s support and is ideal when seeking guidance on how best to fund your business.
Are There Non-Loan Ways To Fund A Business?
If you’re unable to seek funding or qualify for a grant, you may want to consider alternative methods of sustaining and growing your business.
If your venture has fallen on hard times and can’t access credit, for example, you may find value in either insolvency or corporate restructuring. The latter can help to identify savings and create structures and ensure businesses remain viable while allowing them to continue to generate revenue over time.
From a start-up perspective, another option is to consider bootstrapping your venture and evolving it slowly over time without a cash injection. Of course, this requires knowledge, discipline and considerable hard work, but it can help to minimise corporate debt and optimise financial performance.