When running a small business in the UK, capital is always a top priority, whether you’re just getting started or looking to expand.
If you have enough money saved up, you won’t have to worry about how you’ll pay for your business’s initial setup or subsequent expansion, and you can put that time and energy toward building your company instead.
A lot of pressure goes into running a company. The pressure of worrying about how you’ll pay your bills if you don’t have enough money to do so can keep you from putting your full attention on other aspects of running a successful business. In the business world, this kind of tension is lethal.
A solution; government funding.
UK Government Funding
To aid entrepreneurs, the government of the United Kingdom offers more than 1,500 distinct funding programmes. The federal, regional, and local governments in the United Kingdom are all responsible for these initiatives.
Grants, loans, exemptions, and credits all fall under this category and can be used to supplement the costs of running a small business.
The stress of worrying about where the next dollar will come from can finally be put aside, and you can put your full attention on growing your business.
Different types of government funding have different purposes, so it’s important to recognise them to fully appreciate the government’s financial support.
Small business owners frequently prefer to receive funding from the government. Nonrepayable business loans are loans that do not need to be repaid, and the money you borrow can be used however you see fit to run your company.
Not taking advantage of these grant programmes can be detrimental to your business.
In fact, the UK government offers grants that can be used to pay for things like salaries (yours and your employees’) and training to ensure that everyone doing the job is up to par with industry standards. This can be quite expensive for your company, so receiving funding from the government can be extremely helpful.
Furthermore, there are renovation or leasehold improvements grant options that may be helpful if you intend to improve your location (factory, building, office, etc.). To a greater extent, the economy and the environment will benefit from your green efforts.
While grants are non-repayable, it’s important to keep in mind that the government will eventually recoup the money it spends on you through taxes, regardless of how successful you become.
There is another source of government funding that you should definitely take advantage of.
It’s natural to be wary of taking out a loan, especially if you’re just getting started or hoping to expand, but there’s a reason they say “never use your own money” in business, so occasionally turning to outside sources is a good strategy.
When compared to private bank loans, which typically require excellent credit, a sizable down payment, collateral, etc., government loans are far superior. This is because government loans typically feature more favourable terms, repayment conditions, and interest rates.
To get your business off the ground, or to take it to the next level, applying for government loans is a smart move. The infusion of new funds into your company will make sure you have the money to cover all of your bases, letting you devote your full attention to running the company.
Although you will be responsible for repaying the loan, you should focus on getting your business off the ground and profitable as soon as possible so that you can stop worrying about money and focus on paying it back.
To see all government loans, including the no interest and low interest options available that you may be eligible for, you can use the Funding Database.
Financial aid in the form of tax breaks and grants from the government are both possibilities.
Not missing out on these tax credits and deductions is crucial. Don’t throw away your invoices and receipts if you’ve already spent money on your business, especially on things like equipment, technology, and R&D, because there are a lot of ways to get a tax refund or credit for those expenditures from the government.
While “grants” and “government loans” are more well-known, tax credits and deductions should not be overlooked.
How to apply for government funding
We hope you’ll see the light and not miss out on potential financial aid from the government in the form of grants, loans, or tax credits.
The positive effects on your company could be substantial.
Here are the measures you must take to request financial aid from the government:
- Make sure you have a completed business plan
- Compete the 3 year financial statement or projections
- Breakdown your funding requirements (focus on what you need the funds for)
- Narrow down your funding options to the ones you are most interested in and eligible for
- Complete the funding applications (and have an expert review/verify)
Asking for assistance is always a good idea when submitting an application. In order to obtain funding, it is recommended that you work with a professional who is familiar with the funding process.
Experts are UKStartups are able to assist you with your business plan, preparation of your financial statements; assisting you in determining what you may be eligible for and finding you the needed funds. You can contact an expert or use the Small Business Startup Platform to get that help.
Before you apply, ensure that you do have your business plan – as this is the 1st and most crucial step to the funding application process. If you don’t have a business plan as of yet, you can use the Business Plan Builder Tool to get started building one that is fit for your business and for the funding search process.