Funding options for SMEs

Saturday 27 August 2016

Many people dream of running their own business one day, but there are many aspects to take into consideration, including funding. Businesses don’t run themselves, money doesn’t grow on trees and without funding a business cannot function at all - though an increasing number of businesses don’t require high costs and overheads. In addition to this, there are many aspects of finances to consider, such as tax, expenses, accountancy and investment.

For owners of small and medium-sized enterprises (SMEs) funding seems to be hard to come by. Owners of SMEs are less likely to receive sufficient funding but are more likely to borrow money in order to invest in the business.

Nevertheless, there are many different funding options for those running SMEs, without having to resort to overdrafts, payday loans and loan sharks.

Bank loan

Getting a loan from the bank is one option to consider, but bear in mind that you will have to be subjected to various checks. You many also have to look at other sources for loans, such as credit unions and start-up loan companies. However, avoid payday lenders and loan sharks.

Business funding initiatives

You could obtain grants from various sources - i.e. the government, local business schemes, university, etc - or you could consider gaining financial backing from big companies.

Savings

If you have saved up enough money along the way, then this might be a feasible option. For some people running small businesses, they may work odd jobs alongside running the business in order to earn extra income to invest in the business. This might be an option to consider if it is possible.

Specialist Funding Company

Depending on the type of business you are thinking of starting up, you could access a specialist funding company such as Boomerang Funding who provide funding solutions to the temporary recruitment market. depending on the sector you work in, other specialist funding support may be available so it’s worth researching this further.  


By Victoria McDonnell

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