The first port of call for most established business owners is their bank, as that’s where you’ll usually find the widest variety of funding to inject cash into your business.
Usually, your chances of securing finance from your bank will depend on your track record – the longer you’ve been in the business, the more reliable your business will be viewed.
But if your bank rejects you, fear not. Several other external funding sources are out there for you to secure the cash injection your business deserves.
What can banks do for my business?
Most of the UK’s big banks reject around 100,000 small businesses applications for funding worth approximately £4 billion each year.
Popular options banks can provide include overdraft extensions, business loans, cashflow finance and business credit cards.
Overdrafts and credit cards are usually quick fixes rather than options to prompt sustained growth in your business, as the borrowed cash will need to be repaid quickly to avoid being stung by interest.
However, being overdrawn or taking out credit against your business can carry substantial risk if you cannot keep up with repayments.
Can peer-to-peer lending help my business?
Peer-to-peer (P2P) lending platforms were among the fastest growing sources of business finance, although there’s a suspicion rising interest rates may see their appeal decline.
P2P platforms match lenders with business owners, most of whom have seen sparse returns on their deposits held in banks due to prolonged spells of low interest rates.
Funding Circle, which counts the government as one of its clients, is a transparent P2P lending platform which enables small business to borrow funds through business loans.
It claims to have lent more than £3.4 billion to assist over 35,000 UK businesses since the P2P platform was founded in 2010 following the financial crisis.
What government funding schemes can help?
Government grants for small businesses and startups in Devon vary depending on the type of your business, the industry you operate in and your location.
For example, rural businesses that can demonstrate they can sustain growth and will boost the local economy through providing more jobs have fared better than other businesses in recent times.
Fast Track to Growth – Devon provides networking events, access to business advisers and a masterclass to startups in Devon plus the chance to claim up to £10,000 in business growth support.
Get in touch
Our team of specialists can talk you through all your external funding options and how to access them as part of our business startup service.
Contact us on firstname.lastname@example.org or call 01363 773191 for more information about our business startup services.