We understand that financial strains could affect businesses at any time, which can make SMEs and start-ups especially vulnerable.
Whether you're just starting out, or further along in your business journey, you can find independent advice and funding options available to help businesses like yours thrive. This includes start-up loans, investment opportunities, government advice and support and industry-specific grants to help your business grow.
The UK Government provides an online platform where businesses can search for financial support based on their needs, industry, and stage of growth. This helps businesses find relevant funding options, including loans, grants, and other financial support specific to their sector.
Many organisations, such as the Prince’s Trust or local business hubs offer mentorship programmes designed to guide startups through financial challenges. These mentors can support with business strategy, funding applications, and overcoming financial hurdles. There are also many charities offering financial advice for self-employed and sole traders.
It’s crucial to set out a solid financial plan, including a clear budget, forecasting, and cash flow management. Financial advisors can help you set realistic targets, manage expenses, and ensure you’re on track for your business to succeed, so it’s worth finding a company that can support you with this. They can also assist with tax planning and strategies to reduce costs while maximising profits.
There are many industry and purpose-specific grants available through government schemes, with the majority available to new and small businesses. These grants are often industry specific and normally require businesses to demonstrate how the money will benefit the wider community, such as through the creation of jobs or boosting the local economy. This means grant applications are normally more complicated and require a bigger time investment from business owners. As a result, approval times can be longer so it’s wise to factor this into your business and cash flow planning.
The most common of grant types is a direct grant. This needs to be used on start-up essentials, such as staff training or equipment. Some direct grants will require businesses to provide 50% of the overall value of the grant, but funds of up to £500,000 are available dependant on your sector.
There are various forms of early-stage investment for businesses. Three common examples are:
Crowdfunding is a method of raising small amounts of money from many people to fund a project, business venture, or cause. There are various online providers for this service, such as GoFundMe or KickStarter. Crowdfunding can come in various forms, such as:
Angel Investment is aimed at organisations at the start of their journey, with investors providing seed money in return for a portion of the business. Often, they come in the form of entrepreneurs, who can also share their insight, knowledge and business expertise with business owners. Typically, angel investors will invest sums of between £5,000 and £500,000 in any one organisation.
Venture Capital Investment delivers investment through managed funds, raised with private or public money. Venture Capitalists provide support to businesses through financial backing as well as technological and management expertise. They may demand a large share of the company in return for their investment. As institutional investors, they will often expect time-bound returns, so it could come with additional pressure. This should be weighed up against the benefits of taking the investment.
Start-up loans are personal loans designed to help new businesses begin trading. This government-funded initiative gives business owners access to between £500 and £25,000 via an unsecured personal loan. This loan, which must be used for business purposes, does not require any assets to be lodged as collateral and is awarded based on the eligibility criteria set out by the borrower.
Many lenders, including banks, can offer loans to help support your business, no matter the stage in its lifecycle. The most common are usually secured and unsecured loans for small businesses.
Larger loans, which are typically used for large-scale projects (such as upgrading business premises) are normally awarded on a secured basis.
Alternatively, smaller loans are often offered on an unsecured basis. You don’t need to provide an asset to secure the loan, though you will need good credit history as the criteria for an unsecured loan will be more extensive than that for a secured loan.
There are a range of finance options available to support businesses across the UK, but it’s important to select the right type for you and/or your organisation. Spend time thinking about your priorities and do your research. It's worth putting the time in to see what options are available to help your business succeed in 2025 and beyond.
DISCLAIMER: Please note, that the content made available in this article is for general information purposes only. It is not intended to amount to advice on which you should rely. You should obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this article.
