Whether it’s to launce a new product line, expand into a larger operations center, or to acquire commercial vehicles or other equipment necessary to remain in business and stay competitive, there likely are sources of UK small business finance ready and available to help. The British Banking Association maintains a list of approved UK Small Business Lenders and has set up a search page at Money Facts Online

Even if your UK small business has been denied finance by traditional lending institutions, there are other sources your small business can pursue. While securing the needed finance is a tedious and time-consuming task all by itself, properly managing the funding once it is made available can be equally daunting. Every business owner needs solid financial management skills or needs to seek out someone with these skills so crucial to the success or failure of any business.

What types of finance options are available to the UK small business?

Business loans are probably the most common form of business finance arrangement. As with any type of loan, however, the monies distributed must be repaid, with interest, over a period of time. Grants differ from loans in that they are an outright distribution of cash and do not need to be repaid. Grants are awarded to those businesses that can show the monies will ultimately be used in a manner that will further economic growth. Another aspect of grants is that they won’t cover 100% of a business’s financial needs. A business must be able to prove it has the ability to match the amount being awarded.

There are also several sources of EU funding available to help finance UK small business specializing in agriculture, the environment, transportation, education, technology, communication, and information technologies.

Venture capitalists are always on the look out for innovative businesses so if you’re a UK small business seeking finance assistance, don’t forget to investigate these sources. In addition to providing financial assistance, many venture capitalists also provide other types of assistance such as growth and management. Also check into regional venture capital funding, a source of funding provided to small and mid-sized businesses that demonstrate a clear potential for growth.

Getting paid on time is sometimes a significant finance-related problem many UK small business owners face which is why the Late Payment of Commercial Debt Act was passed in 1998. This law allows small businesses to collect interest on late payments. While it’s better for a business to be paid on time, the ability to collect interest does offer some financial consolation.

UK small business finance programs are available to businesses willing to locate in economically depressed areas. Why? Because it’s in everyone’s best interest to turn these types of areas around. The swing from depressed area to vibrancy often begins with one willing company.

If your UK small business needs finance assistance, you’ll be able to find it. You will, however, have to prove your business is worthy of such an investment first.

David
Small Business Resource