Access to finance is a crucial factor in the growth and success of any business, especially for start-ups and scale-ups looking to innovate and expand.
The good news is that there are numerous funding opportunities available, each tailored to different business needs and stages of development.
However, navigating this landscape can be complex. We’ve rounded up some of the key types of finance options, as well as a few current opportunities to help you find the right fit for your business.
Understanding Your Funding Options
- Equity Financing: This involves raising capital by selling shares in your company. It’s a great option for businesses with high growth potential, as it provides significant funding without the burden of repayment. However, it does mean giving up a portion of ownership and control.
- Debt Financing: Traditional loans or credit lines fall under this category. This is ideal if you have a steady cash flow and want to retain full control of your business. Keep in mind you’ll need to meet the lender’s repayment terms, which may include interest and collateral requirements.
- Grants: These are non-repayable funds usually provided by the government, charities, or corporations to support business growth, innovation, and development. They often come with eligibility criteria and project requirements but are an excellent source of funding without financial liability.
- Crowdfunding: Platforms like Kickstarter or Indiegogo allow you to raise small amounts of money from a large number of people, typically in exchange for early access to products or services. This can also be a powerful marketing tool to build a community around your brand.
A small selection of current finance opportunities
- UnLtd
UnLtd finds, funds and supports social entrepreneurs – enterprising people with solutions that change our society for the better. They were formed in 2002 by seven organisations who believed that social entrepreneurs had a much bigger contribution to make to our economy and society.
The grant scheme combines funding and support to help social entrepreneurs get started or scale up.
Depending on your stage of development they can offer grants up to £18,000: https://www.unltd.org.uk/awards
- The Innovate UK (IUK) Smart Grants programme
Designed to support brand new and high-impact innovations from micro, small and medium-sized enterprises (SMEs) with the aim of accelerating their innovation journey.
Applications can come from any area of technology and be applied to any part of the economy such as, but not exclusively, net zero, the arts, design and media.
IUK has allocated up to £25 million to fund innovation projects in this competition. Projects of 6 to 18 months must have total eligible costs between £100,000 and £500,000 and can be single or collaborative. Projects of 19 to 24 months must have total eligible costs between £100,000 and £1 million and must be collaborative.
The competition is open to single applicants and collaborations. To lead a project, you must be a UK-based business of any size or a research and technology organisation (RTO). If you’re collaborating with others, the application must include an SME. To work alone, you must be an SME.
The next deadline for applications is 23 October 2024 (11:00): Competition overview – Innovate UK Smart grants: July 2024 – Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)
- Brunel Innovation Voucher Scheme Supports UK Organisations in Innovation
Brunel University London is offering the Brunel Innovation Voucher Scheme to support collaborative projects aimed at developing new products, processes, or services that foster innovation and growth within organisations.
The scheme provides vouchers valued at between £1,000 and £5,000, which cover specific academic project costs at the university. Participating organisations are required to contribute an equivalent value, either in cash or in kind, such as staff time, materials, or equipment.
The scheme is open to SMEs, social enterprises, and third sector organisations based in the UK, offering them an opportunity to collaborate with academic experts to drive innovation within their operations.
Applications are open on a rolling basis: Innovation Voucher Scheme | Brunel University London
- New Round of £25,000 Small Business Boost Competition (UK)
The Business Boost Competition is designed to help small businesses bounce back from economic challenges, and boost the chances of new start-ups. The scheme can help those with an idea to start, grow or enhance a small business.
The winner will be awarded a £25,000 grant.
The competition is open to UK resident entrepreneurs and businesspeople aged 18 and over.
Entrants’ businesses must not have an annual turnover exceeding £750,000 or have received over £50,000 in private funding in the past two years (this does not include government grants).
The deadline to apply is 15 October 2024: Business Boost – £25k small business grant (simplybusiness.co.uk)
Navigating the world of finance can feel overwhelming, but understanding your options is the first step toward finding the right funding to fuel your business’s growth.
Check out some of the events taking place all this week as part of Business Finance Week to discover the opportunities, organisations and people that can support you.
