Financial support
As part of the wider business support package, businesses can find finance options with the British Business Bank in six easy steps.
The British Business Bank is 100% government owned but independently managed. It brings expertise and government money to the smaller business finance markets. The British Business Bank doesn't lend or invest directly. Instead, it works with over 130 partners such as banks, leasing companies, venture capital funds and web-based platforms.
To apply for a loan, businesses will be asked to answer six questions and this will help to generate a list of finance options that could be suitable for that business to consider. You can read more about it here.
Peer to Peer lending
Funding Circle are an online lending platform that connect SMEs looking to borrow with other investors who want to lend.
Crowdfunding
Crowdfunding is a way to bring in a large number of investors, investing small amounts to get your start-up project off the ground. It’s also a great way to promote your product and services.
There are three types of crowdfunding:
1. Reward funding: you reward contributors with a product sample or a gift if they give a certain amount.
2. Debt funding: this is where you get a loan from crowdfunding rather than a bank for example and then repay it.
3. Equity funding: you give your donors equity in your company in exchange for their investment.
Competitions
For early developers and start-ups entering various business competitions and awards are a good way to secure funding if successful, but also gain mentoring support as well as long-term recognition. A good example of one of these is highlighted below:
Mayors Fund for London: Mayor's Entrepreneur Competition
This competition aims to create growth that makes London cleaner, greener and ready for the future. It also aims to ensure that students see entrepreneurship as a viable career path and get the skills they need to succeed.
There are a number of award categories in the competition with winners receiving £20,000 to start up their business along with expert mentoring from staff at City Hall to get their idea to market. Example of previous award categories include:
- creative industries
- environment
- health
- tech.