Grants for Starting a Business

As a small business owner, maintaining a solid cash flow to run day to day operations is quite a challenge. Thus, for small business  and start up businesses, money is the biggest stumble block. Small business owners always wonder who is going to help them in terms of cash to run the business. Apart from banks, there are several other schemes that you could turn to secure finance. However, each scheme has its own criteria for business start-ups.

Types of support

All publicly funded schemes are designed to encourage new businesses, to bring wealth and ultimately create jobs. To realise this objective, the government makes available a portion of taxpayers’ money to help and encourage enterprise. This cash usually gets distributed through a variety of ministries, departments, agencies on a national and local basis.

Types of Business Start up grants

Direct grant

Direct grants can be defined as a cash award, which is usually given out for activities such as training, employment, recruitment or capital investment projects. However, direct grants require companies to contribute at least 50%.

Repayable grants

Repayable grants are basically cash funding offered to start up businesses for a project with the expectation that the grant will be paid out of future revenues. However, if the project fails, the grant is written off.

Soft loan

Soft loans are the loans that are attached to generous payment terms and conditions when compared to other formal financial instruments. The interest rates could be low or not at all, and even the repayment period will be lengthy.

Access to resources

There are schemes that enable small and start up businesses access physical resources to carry on with their business activities. Resource accessibility is one of the most important things for small businesses as they face a lot of difficulties initially to engage in their business activities due to their inability to access resources.

Shared cost contract

Research and development is an area of huge expertise and money. Therefore, many small and start up businesses are unable to afford these costs without the help of some other regulatory body. However by sharing the costs with other businesses, and then sharing the expertise, this problem can be avoided.

For more information follow the below link

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073866776

For advice on start up grants, funding and for business plans, contact KVS Accountants. We are accountants serving, Putney, Putney Heath, Southfields, Wimbledon, Roehampton and Tooting

 

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