Getting funding for a start-up business can be a hard job, especially with the banks unwilling to lend unless you’ve got a watertight pitch. However, there’s good news from the government – David Cameron has recently announced an increase in funding for the Start-Up Loans scheme, adding another £30 million to the funding pool.
Announced in May 2012, this scheme is now projected to hand out a total of £110 million to young entrepreneurs over the next three years up until 2015. While previously only available to a small age group of 18-24 year olds, it is now open to entrepreneurs aged right up to 30 years. This makes start up funding more accessible than before, for more innovative businesses to get off the ground – just what the UK economy needs.
This new amount of funding is expected to encourage more people to apply in order to get access to start up financing. So far, since the first start up loans were handed out in September of last year, more than 3,000 entrepreneurs have either applied or registered an interest in start up funding. More importantly, £1.5 million worth of funding has been released and 460 new businesses have benefitted from a loan from the scheme. It’s now predicted that 100 companies a week will be applying for funding.
If your start up business needs funding, then applying for this loan scheme could help you access funding that might be out of reach through the banks. Another option is to look into invoice finance – you don’t need long financial records, as soon as you’ve got sales on your books you can start a programme of factoring against unpaid invoices. Alternative finance and government start up schemes are two options that could help your business to grow.