Business Funding Sources

Mandy asks…

What are some possible sources of funds for a new business?

admin answers:

Quite possibly the biggest one could be a Loan from a Bank

Mary asks…

Where can I get funding to start a business?

I’m looking to start a business that requires the development of a large, complex web application. I’ve estimated that the development could cost anywhere up to £10,000. The problem is, I have very little of this money myself – so where can I source the required funding?

The options that I have thought of are:

- Business loan – but I have no real credit rating (Not bad credit, I’ve just not had much credit in the past) so not sure if this would be an option
- Funding from local authorities – I have received funding in the past from Business Link, but this was a number of years ago and I understand it’s much more difficult to get help now
- Outsider / VC Investment – I’d be willing to consider investment of this kind, but I have no idea how I’d go about finding someone to invest

Anything I’m missing?

admin answers:

Princess trust is a good idea and the age limit is up to 30.
They can give you a low interest loan of £1000 – £5000 providing you have a detailed business plan, cash flow forecast and sales forecast, you will then meet with panel members who will make the final decission, but as long as you know your business you’ll be fine.
You mentioned working with Business link in the past, why havent you contacted them as they will have details of all local and european funding schemes for start up business.
Unfortunately objective one funding is nearing its end but its always worth a try.
Your best bet is match funding if you have little assets.
Banks such as Lloyds or barclays will meet with you to discuss funding but you need to provide a well thought out business plan.
Try match funding £5000 from Princes Trust, £4000 – £5000 from the bank and it would look good if you could even put in £1000 as it shows commitment on your part.
There are small business start up schemes all across the UK but you need to contact them all.
Venture capatalist won’t usually look at such a small ammount and will either want a high share in your business or to put a member of the team as a controling director, depending on your trading status ie sole ,Ltd, partnership.

Good luck and contact your local college and business link for start up funding schemes in your area.
Dont listen to those who say its impossible they are usually quiters, I’ve been there and done it, it just takes commitment, determination, discipline and belief in yourself and idea.

Richard asks…

What are the sources of the short-term funds for business owners?

admin answers:

Banks offer working capital finance secured against real estate, stock in trade or any other asset. Another way is debtor bill discounting. Hope it helps.

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