Getting the funding to get your business idea off the ground can be a difficult if you don’t know where to start.
These days, there are multiple cash flow sources to choose from, including crowd sourcing, bank loans and government grants. However, it’s essential to evaluate all of your options before choosing a source of finance.
Prepaid MasterCard providers, icount, have generously offered up their tips for finding and securing business finance. So if you’re finding it difficult to fund your business idea, read on to see what other options may be available to you.
1. Government Start-Up Loan
If you’re starting a new business, you may be eligible for a start-up loan from the government. Under the scheme you can borrow up to £25,000 to be paid back within 1 to 5 years.
With 12-months of free mentoring for loan recipients as well as a low, fixed interest rate, these government loans are a great way to get the funding you need for your business.
Visit the Start Up Loans website to learn more about the scheme and to see if you’re eligible.
2. Bank Business Loans
Most high-street banks offer business loans for those looking for extra funding. Some offer fixed interest rates and different repayment time periods, so it’s worth shopping around to see which bank loan suits your specific needs.
As with most loans you will be subject to credit checks. So it’s important to make sure you have a healthy credit rating to boost your application’s chances of being accepted.
If you’re looking for ways to build your credit score, you can add a Creditbuilder to your icount card to help you improve your credit rating.
Crowdfunding is the art of raising money for a project, venture or charity through donations from the public.
You can ask people to donate money for almost anything, however many use crowdfunding platforms to raise money for developing their products.
Crowdfunding is a great way to secure business finance, as there’s no limit to how much you can money you can raise. And it’s also a good way to raise awareness and create demand for your product or service.
4. Fund Yourself
One of the most reliable ways to secure business finance is to fund yourself. Getting an extra source of income such as a part-time job can help you to get the extra cash you need to develop your business.
It may take a while to save up to the amount you require, however you won’t have to worry about credit checks or failed loan applications.