The government has established a new programme to make a small business access finance through an alternative finance option. The new service is outlined with key points making it consider other options for funding when searching to finance your own Stoke-on-Trent business.
The New Matchmaking Service for Small Businesses
The government’s new scheme will require nine of the country’s biggest banks to instantly pass on the details of the small business who has been rejected for finance to the three finance platforms: Funding Options, Funding X change and Business Finance Compared.
The platforms are then used to share information with an alternative finance provider and to facilitate a conversation with the Stoke-on-Trent business and any provider who finds their business interesting. Bank of Ireland, Barclays, Clydesdale and Yorkshire Bank, Danske Bank, First Trust Bank, HSBC, Lloyds, RBS and Santander are all mandated to provide access for all finance platforms, although for small businesses they need to provide details before they are shared.
Alternative Sources of Finance
When you raise funds for a Stoke-on-Trent business, it will mean a significant challenge for people. Whether you’re starting a new business or requiring more capital for expansion, you need to consider factors, or whether you opt for the government’s new funding initiative. Here are some ways to secure finance:
- Through Overdrafts
Overdrafts are forms of credit that you and your bank will provide a set amount of money. The overdraft is a flexible way to cover short-term expenses and possible unexpected or unforeseen business expenses. Overdrafts, however, aren’t intended for long-term source of finance. If continued to use, then the bank may perceive that your Stoke-on-Trent business is in deep financial difficulty.
- Apply for a Government Support or a Grant
Government, charities and local councils take charge in offering grants. For those who qualify, the grant is a helpful source of inexpensive financing. In fact, grants are non-repayable, so it makes a strong competition among those wanting to get financing. Furthermore, grants are only given to those who need to materialise specific projects during proposal stages.
- Sell Business Shares to an Investor
Using this option will mean you are selling part of your business stake to an investor. If you have sold a share to an investor, profits or losses are equally shared among members. This financing entitles no monthly repayments and interests.