Funding Options Post Pandemic
The pandemic came with many challenges for a number of businesses so it’s understandable that business owners might be struggling to find funding options. If you’re looking to expand your current venture or looking to make your hobby into a business, finding the right financial option is essential.
Grants
Grants are the most popular option for businesses especially for small businesses as it’s like a grant however you don’t have to pay back it. You can find plenty of information on small business grants through Gov.uk website however the application process can be a challenge.
The competition for grants can be highly competitive and doesn’t necessarily mean you will be approved. It’s important to read any terms and conditions for your grants and ensure that your business qualifies before starting the application process.
One of the best ways to start your search for a grant is to look at your local council and see what is available. These grants may not be for a large amount of money, they can be incredibly useful if you’re looking to expand your business or to get your start up business off the ground.
Asset Finance, Business Loans and Invoice Finance
Another option is using a commercial finance facility to provide funding for your business. Depending on what you need determines the finance solution that is most suitable for you.
For example, if you’re looking to inject more working capital then a business loan may be the most suitable option or even an invoice finance facility. If you’re looking to purchase new machinery for your business, a lease or hire purchase finance may be best fitted.
It’s best to speak to a Commercial Finance broker like ourselves who have excellent knowledge of the products that are available and they will be able to find you a finance option that is most suitable for your business’ needs.
Government Backed Recovery Loan
The Recovery Loan Scheme is designed to provide finance to businesses that have been impacted by COVID-19. The existing Recovery Loan Scheme was due to end on the 31st of December 2021 however, the Government has extended it until the 30th of June with some criteria changes.
Investors
Investors are one way of funding your venture. Funding from an investor will sit somewhere between a grant and a loan because your investor isn’t expecting you to pay them back however, they will want a share of your company in return.
When it comes to pitching your business idea to an investor, it’s important to have a thorough business plan before pitching.
Can you get funding post-pandemic?
The simple answer is yes. It may be more difficult to secure the funding you need whilst the economy recovers but it doesn’t mean that you’re not able to. Lenders may request more supporting documents or ask for more security against what you would like to borrow.
As commercial finance specialists, we have extensive knowledge of the products available so if you’re not able to get one type of commercial finance, a different type may be available for your business. Sometimes the key to getting funding is simply presenting your business in the right way with the right supporting documents.
If you’re planning for 2022 and wish to speak to our team about the different finance options available, don’t hesitate to get in touch with a member of our team for a no-obligation discussion. Call us on 01270 443510 or complete our contact form and we’ll be in today as soon as possible.