Discover your business finance options
SimpliFi is a single destination that offers easy-to-understand financial information to educate, equip and support businesses across Greater Manchester to grow.
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SimpliFi is a single destination that offers easy-to-understand financial information to educate, equip and support businesses across Greater Manchester to grow.
Discover which finance options can help pre-starts or start-ups unlock growth
See which finance options can help businesses achieve success
A way to raise funds for your business by selling shares or partial ownership to people or an organisation in return for money, who can share in your profits or losses. Equity funding can help you raise large amounts without building up debt, and your investors will have a personal stake in helping your business succeed.
Money that you can borrow from external sources, with a liability to repay the borrowed amount with interest over a set time period. Debt funding can help you get access to cash, while retaining full ownership of your business.
Funds provided by government organisations or agencies that can support you with specific business projects, initiatives or activities. Public sector grants provide you with financial support without a requirement to repay the funds.
Funds provided by government organisations or agencies that can support you with specific business projects, initiatives or activities. Unlike public sector grants, public sector loans must be repaid over a set time period with interest, and this interest is typically at a lower rate than loans from private lenders.
The type of business and the sector within which you operate may constrain the options available to you, but most businesses should be able to access some kind of start-up funding for a small business.
Generally speaking, you must be close to revenue generation as it is that revenue which will repay any proposed loan.
Your own bank may provide lending options such as a small business overdraft or short-term business loan, and 3rd party providers can be identified via a web search. Other options include asset finance and leasing which can also be used where the asset is effectively the loan’s security.
A stand-out finance option is the British Business Bank Start-up loan scheme. This start up loan for new business offers a competitive interest rate of 6% over a term of 5 years with no set up or early repayment fees. Furthermore, applications can be made within the first 3 years of trading.
Selection of a suitable finance option as always is a case of ‘buyer beware’ and you should always carefully scrutinise eligibility and pricing, as well as the terms and conditions, before making a funding decision and application.
Generally speaking, credit history is a significant factor in a lender agreeing to lending facilities.
Clearly, a track record of repaying debt satisfactorily will be comforting to a lender. Conversely, a track record of being behind in loan repayments or even defaulting on lending obligations may at worst prevent credit from being obtained, and at best make future borrowing very expensive.
Business plans should be prepared if required by the lender, although business plans are still useful documents to present to provide an overview of the business, its past performance, its future plans as well as articulating the proposition in hand.
A business plan is not always needed depending upon the lender and the nature of the request, so advice should be sought from the lender at the outset as to what information the lender requires. If you need to know how to write a business plan in the event you do require one, you can find out how to do so in our useful guide.
Business start up loans and grants through the British Business Bank could lead to networking or mentorship opportunities as they offer 12 months free mentoring. Alternatively, you could contact our team for a bespoke 1-2-1 support service at no cost to you or your business.
When Collctiv, a Manchester fintech, saw demand for its payment app skyrocket, the team knew they needed funding to keep up with its soaring popularity. With our help it secured a £200,000 investment to invest in its app structure and marketing efforts, and has since processed over £3m in payments.
GM Business Growth Hub (part of the Growth Company)
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90 Great Bridgewater Street,
Manchester M1 5JW
Email: enquiries@simplifigm.co.uk
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