Securing the right grant or loan for SMEs in London is crucial
Starting or growing a new business in London can be an exciting yet challenging journey. So securing the right funding is crucial to ensuring your SME thrives in the competitive market. As experts in SME start-ups and growth, we’ve provided some essential tips and valuable insights on how to get funding to start a business.
Researching financial support for London SMEs
Securing funding is one of the biggest hurdles for new SMEs. To support your research, here are some options to consider:
Government support: UK Government and local authorities may be able to signpost you to suitable loans and grants for SMEs. For instance, local growth hubs provide financial support – find yours and get in touch for advice. You can also search for central government funding here.
Angel investors and venture capitalists: If you’re willing to provide significant capital in exchange for equity in your business, why not look for a suitable investor? More here.
Crowdfunding: Platforms like Kickstarter and Indiegogo allow you to raise funds from the public. The most successful campaigns involve businesses offering items or services in return for donations. You’ll also need some eye-catching video or photography, as well as punchy copy for your campaign. Why not look at previous, successful crowdfunding campaigns in your industry for some inspiration?
Bank loans: Bank loans are another option, though they may require a solid credit history and collateral. Over the past decade, we’ve seen an explosion in alternative lenders which have been set up specifically to service small businesses. They often offer more favourable terms and require less of your https://www.re-cap.com/financing-instruments/alternative-financingtime when applying for a loan. Take a look at lenders such as Aldermore Bank, Fleximize, Funding Circle, Iwoca, Paragon Bank and the Start Up Loan Company.
High street banks: If you still want to explore mainstream banks, then check out Lloyds Bank which offers Asset Finance for machinery and other equipment.
Factoring: Factoring is a financial service where a business sells its unpaid invoices to a third party to get quick access to cash. The third party, called the factor, pays the business the invoice amount, but takes a fee or commission for their service.
Young entrepreneurs: For young company founders between 18 and 39, the Samuel Wilson Loan Trust offers loans. Applicants must be in need by reason of ill-health, disability, financial hardship or other disadvantage. The Prince’s Trust also offers helpful schemes for young people.
Once you’ve pulled together the evidence, log into your Government Gateway account to review the information held by the Valuation Office Agency (VOA) on your property. If you think the rateable value is wrong, you can submit a ‘check’.
The review process by the VOA may take some time, so prepare for a bit of a wait.
Read our case study about a coworking space operator who worked with us to secure almost £100,000 in refunds. Despite the detailed process it’s quite straightforward, as long as you prepare fully.
Contact us for free business support and specialist business events in London. Our experts offer advice in finding your way through the rate relief claims. Sign up here.
Preparing your application
Before you embark on your applications or pitches, you’ll need to do lots of groundwork.
Research your market: Get to know your industry, competitors and potential customers. This information will help you spot gaps in the market and whether your business is going to be viable, and therefore attractive to lenders or investors. There are lots of tools available, including ai, to assist you.
Create a business plan: A well-structured business plan is essential when sourcing finance. You need to provide evidence of how you’ll grow your business over a few years. There are numerous business plan templates online to download and customise, such as this one.
Proof of concept: Providing evidence that your business has strong potential to succeed may be required, especially if you’re looking for investors. So gather content such as product prototypes, customer testimonials and sales data.
Legal documents: You also need to prove that your business is compliant. So gather together licences, leases, contracts for employees, suppliers and other parties, and intellectual property documents.
CV: Showcasing your experience in business and in your industry is also important to reassure the lender or person considering investing in your enterprise.
Budget and cashflow: Providing clear financial plans demonstrates that you have invested effort and thought into the business’ growth, with a realistic forecast for increasing turnover over time.
For more expert advice on finding finance and other key information for SMEs in London, contact us today. Drop us an email: in**@lo***********************.com .
