Finance

Start Up Grants - Up to £500 to start your FIRST business

Are you thinking of starting your first business? 

If you are, you may be eligible for a start up grant of up to £500 to help towards your start up costs. We can help with things such as rent, equipment, training and more. Our team of business advisers will work with you to develop that all important business plan and help you make a grant application. For more information and support in making your new business a success get in touch today.

For further information on the grant application process, identify if you are eligible and how financial assistance may be accessed, please contact the team Contact Us | Hull and East Yorkshire Combined Authority

Opportunities

The Supply Chain Network opportunities map is available to businesses to help share intelligence regarding developments, tender/bid opportunities and requests for quotations.

Whether you are looking to identify an additional pipeline of opportunities and contracts to apply for or looking for a supplier yourself and want to post an opportunity the platform is free and easy to use. The opportunities map platform is free and easy to use.

Visit: The Supply Chain Network to find out more.

Self-funding or bootstrapping

Most people rely on personal savings, assets or income to start and build a business without applying for external funding.

  Advantages

• You keep full control of the business
• You avoid loan repayments and interest charges

• Having a personal financial stake in the business makes you more conscious of risk

  Disadvantages

• Your personal savings or assets are at risk if the business struggles
• It may be harder to get the staff, premises or tools you need without extra funds
• You may not be able to build and grow as quickly as you’d like

Grants

A grant is an award of money given to a business for a specific purpose. Your local business support service is a good place to find out about grants in your local area.

   Advantages

• No debt – you do not have to pay grants back
• Targeted funding for specific activities – can be a good way to manage specific challenges, like digital transformation or energy efficiency

• Local or sectoral focus – often limited to businesses in a certain area or sector, so you may be well-positioned to apply

  Disadvantages

• Long application process – there may be a long application process and competition for funds
• Restrictions – grant funding typically has strict rules setting out what you can and cannot use it for
• Reporting requirements – you will usually have to submit detailed reports to funders showing how you’ve used the money

Loans

Loans are a type of debt financing. You borrow a lump sum and pay this back over time and with interest.

Some loans are government-backed, such as:

• Start Up Loans for new businesses and businesses trading for less than 5 years

• loans provided under the Growth Guarantee Scheme to support small UK businesses who want to invest and grow

  Advantages

• Full control – you keep full control of the business
• Predictable repayments – a fixed repayment schedule means you know how much you’ll be paying towards the loan each month and for how long

• Availability – there is a wide range of loan funding available, although interest rates and terms will vary between providers

  Disadvantages

• Debt – the full amount of the loan must be paid back as well as any interest and charges
• Affordability assessments – you, or your business, will need a good credit score and you’ll need to factor in repayments to your budgeting and cash flow forecasting
• Risk – some loans require security and any assets you register as security are at risk if you do not keep up repayments

Equity finance

• Equity finance is when people invest money in your company in exchange for a share in ownership. This can include:
• crowdfunding, where you encourage investment from supporters and investors
• venture capital, which focuses on innovative, high-growth companies

• angel investment, where someone invests in your company for a small ownership stake and often provides guidance and mentorship Funding options for business - Business.gov.uk

  Advantages

• No repayments – you do not have to repay the money that investors give you
• Expertise and contacts – investors often bring industry expertise and connections which can help you expand and grow

• Access to future funding – successful investment can open the door to further investment and growth in the future

  Disadvantages

• Loss of control – equity finance usually involves giving investors a say in decision-making
• Pressure from investors – investors may expect quick growth and strong returns and you may feel pressure to deliver
• Complexity – your legal, reporting and management requirements will get more complex and time-consuming when you have external investors involved