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