New Business Loans From the Government
Starting up a new business is always daunting and the one question that everyone always asks themselves is “where am I going to find the money?” Banks will often be reluctant to lend to business owners who do not already have a proven track record, leading to the vicious catch 22 situation whereby you cannot get capital without the experience gained owning your own business and you cannot get experience in owning your own business without capital. Fortunately, Her Majesty’s Government has several schemes and products in place, which are designed to provide low-interest new business loans and even outright grants to those who need it most.
Government Help in Attracting Business Finance
The UK government offers assistance to those seeking investment through its Business Link programme. Business Link’s website has a variety of tutorials on everything from preparing a business plan to approaching potential investors. The tutorials are printable, making it possible to produce a portfolio, in PDF format, with which to impress prospective financing sources.
Take it to the Bank
The site also gives detailed information on approaching banks for financing, including what they look for in a business, credit rating and scoring and a detailed checklist of what you will need in order to prepare that all-important bank application.
Government Grants
Sometimes, the government will give a grant to new businesses that are just starting up. Needless to say, competition for these grants is fierce and so the eligibility criteria are very strict. Your company is more likely to be eligible if it is in an area with high levels of social deprivation and/or if it is in a sector that has been hit particularly hard by long-term economic and social trends, for example agriculture or fishing, having said that, anyone could be eligible. Business Link provides an online questionnaire to help put anyone considering starting their own business in touch with both national and regional grant providers. These institutions each set their own eligibility criteria for new business loans. The site is free to use and so you have nothing to lose by checking it out.