Start-up Loan Company

A Start Up Loan is a government-backed personal loan for business purposes. Start Up Loans of up to £25,000 are available to individuals over the age of 18 who are eligible to start a business in the UK. It is a fixed-rate loan at 6% per annum over a 1-5 year loan term and comes with a package of business support. Individuals can only receive one Start Up Loan, however more than one partner in a business can be eligible to apply for a loan.

It is a simple process to apply and a business adviser will help you with your business plan. BBF members, Let's Do Business Finance or Choice Commercial Finance can also help you find out more about the loan, explore your eligibility and start your application.

Crowdfunding

Crowdfunding is a way of raising money by gathering many small contributions from a large number of people, typically online. It is an alternative to traditional finance, helping individuals, Start-Ups and charities secure support projects, products and causes without relying solely on banks or investors. There are plenty of crowdfunding sites out there, such as Crowdfunder, CrowdCube and KickStarter, that allow creators to showcase their ideas and invite backers to contribute in exchange for rewards (like early access to products) or simply the satisfaction of supporting something they believe in. Some crowdfunding platforms, such as Replublic, also allow people to invest as little as £10 into a business in exchange for equity; a stake in your business.

Crowdfunding is a growing, accessible option that can even help to build a customer base and brand awareness. If you're struggling to finance your business venture, perhaps try advertising on crowdfunding sites and you may get investors from all over the world pitching in to help. Money invested through most crowdfunding sites does not have to be returned.

SEIS

The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies raise equity finance by offering tax relief to individual investors who purchase new shares in those companies.

A business can raise up to £250,000, through the scheme, and to be eligible must:

• Have been trading for less than 3 years
• Have fewer than 25 employees
• Have gross assets under £350,000
• Be carrying out a qualifying trade

Before beginning any conversations about equity finance, you'll need to have advance assurance from HMRC. It can be a complex process so talking to a finance professional such as SeedLegals is recommended.

UnLtd

UnLtd supports individuals who have their social ventures firmly rooted in delivering positive social change. UnLtd operates a unique model by investing directly in individuals and offering a complete package of resources; from awards of funding to ongoing advice, networking and practical support.

Samuel Wilson’s Loan Trust

Samuel Wilson's Loan Trust is a charitable organisation which grants business loans to people under 40 years old to establish and develop start up businesses. The purpose of the Trust is to benefit people under 40 years old suffering financial hardship or other disadvantage, by granting loans to individuals, partnerships or limited companies that have recently set up in business or are about to.

Help with moving from benefits to work

If you receive certain benefits and have a workable business idea, you could get help from a mentor and financial support in the form of a weekly allowance to help you start your business.

Access to Work Funding

An Access to Work grant can pay for practical support if you have a disability, health or mental health condition to help you move into self-employment or start a business. The grant is not for business start-up costs, but can pay for things like special equipment, fares to work if you use public transport, a support worker, disability awareness training for colleagues or the cost of moving your equipment if you change location.