{"id":189069,"date":"2024-07-09T03:39:27","date_gmt":"2024-07-09T02:39:27","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=189069"},"modified":"2024-07-09T03:41:21","modified_gmt":"2024-07-09T02:41:21","slug":"alternative-funding-startups","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/startups\/alternative-funding-startups\/","title":{"rendered":"What Alternative Funding is There for Startups?"},"content":{"rendered":"\n

As a startup, it is useful to understand the financial support<\/a> available to you. This can come not only from private investment but from a variety of other sources. This includes funding through the government, which can take the form of a government grant. Furthermore, you may seek loans from social enterprises or philanthropic sources. This article will outline some of these key alternative funding schemes for startups and early-stage businesses. <\/p>\n\n\n\n

What Alternative Funding is Available?<\/h2>\n\n\n\n

Government funding exists mainly in the form of grants, which typically do not need to be repaid. Grants can come in a number of forms and cover a range of awards, and often, a grant is made for a specific purpose. For example, a business grant<\/a> may be given to help you purchase equipment, help with IT costs, or even help cut business rates or your costs for rent on your premises. <\/p>\n\n\n\n

Different government grants have different application processes, and some will have difficult criteria and requirements. However, securing grant funding can be crucial for your business growth and increase your profit margins significantly. In general, you will have to present a business plan, which might involve some market research on your part. <\/p>\n\n\n\n

Loans, on the other hand, are slightly more straightforward and will operate like an unsecured personal loan. For example, you can receive up to \u00a325,000 through a UK government-backed Start Up Loan alone. Therefore, it is worth considering all of your funding options when considering how to finance your new ventures.<\/p>\n\n\n\n

What Government Grants Are There? <\/h2>\n\n\n\n

Some examples of government grants that are currently available are outlined in the table below.<\/p>\n\n\n\n

Grant<\/th>Explanation<\/th><\/tr><\/thead>
Plug-In Van Grant<\/td>If your business needs an electric van for transportation, the government will cover up to 20% of the cost (up to \u00a38,000).<\/td><\/tr>
R&D Tax Credits<\/td>The government will give cash payments to help fund research and development projects relating to a science or technology project. <\/td><\/tr>
Local Enterprise Partnerships<\/td>This grant allows local authorities to partner with local businesses in need of funding. <\/td><\/tr>
Prince’s Trust Enterprise Programme<\/td>This government grant funds and trains young people between 18 and 30 years old looking to launch a start-up business. <\/td><\/tr>
Tax Relief in the Creative Industries<\/td>If your startup is eligible, you may receive a refund of up to 20% of your eligible costs as a tax reduction. Sometimes, this could be a cash payment.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

If you are looking to secure government grants, you will want to ensure that you speak to the grant-making body and present a professional business plan<\/a>. In creating it, focus on the objectives of the grant and demonstrate how your business aligns with the grant’s goals. For example, a grant might exist to help job creation, so showing how your business will create new jobs can give you a competitive edge. <\/p>\n\n\n\n

Some grants will also want you to match the funding that they grant. Therefore, you may want to ensure that your business has enough cash to meet these requirements. Finally, you will want to start applying early, as many grants will operate on a first come, first serve basis.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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