{"id":413,"date":"2024-04-15T06:42:32","date_gmt":"2024-04-15T06:42:32","guid":{"rendered":"https:\/\/www.thebusinessfunds.co.uk\/blog\/?p=413"},"modified":"2024-04-15T06:43:52","modified_gmt":"2024-04-15T06:43:52","slug":"5-funding-options-to-grow-your-small-business-in-the-uk","status":"publish","type":"post","link":"https:\/\/www.thebusinessfunds.co.uk\/blog\/5-funding-options-to-grow-your-small-business-in-the-uk\/","title":{"rendered":"5 Funding Options to Grow Your Small Business in the UK"},"content":{"rendered":"\n<p>The proportion of trading businesses reports a drop from 26% in January 2024 to 22% in February 2024. Meanwhile, 55% of businesses reported static business turnover during the period. 18% of companies believe low customer demand is the prime reason behind business slowdown. Other reasons like rising energy costs and costly manufacturing materials also impact business growth.<\/p>\n\n\n\n<p>Amid this, constant research is critical to&nbsp;\u201cgrow your small business\u201d&nbsp;quickly\u201d. The eagerness to scale with the affordable funding option remains the prime aspect.&nbsp;<\/p>\n\n\n\n<p>Stubbornly high inflation rates in 2023 proved challenging for businesses. Thus, getting quick and cheap funding options proved challenging. The year reveals slow growth despite a drop in inflation and interest rates. However, despite difficulties, 80% of business owners are hopeful about bright prospects. 51% believe in increasing profit percentage by 10% or more.<\/p>\n\n\n\n<p>Additionally, the statement by Andrew Bailey, Bank of England governor, fumes hope.&nbsp;<\/p>\n\n\n\n<p><em>\u201cRecession may already be over with economy revealing distinct signs of an upturn.\u201d<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Which business industry are growing well in 2024 in the UK?&nbsp;<\/h2>\n\n\n\n<p>The data by IBISWorld reveals a list of the fastest-growing industries (by % revenue growth) after surveying 440+ UK industries.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"512\" height=\"299\" src=\"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-content\/uploads\/2024\/04\/fastest-growing-industries-in-the-UK.png\" alt=\"\" class=\"wp-image-414\" srcset=\"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-content\/uploads\/2024\/04\/fastest-growing-industries-in-the-UK.png 512w, https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-content\/uploads\/2024\/04\/fastest-growing-industries-in-the-UK-300x175.png 300w, https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-content\/uploads\/2024\/04\/fastest-growing-industries-in-the-UK-150x88.png 150w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<p>As the chart reveals the production of non-alcoholic beer is the most popular business industry in the UK country in 2024. It is believed to compound at 30% reaching \u00a3807.6 million in 2024. Per capita income, health consciousness and income drive the customer preferences.<\/p>\n\n\n\n<p>If your business deals in any of these industries, it\u2019s high time to grow. However, entrepreneurs face strict challenges while scaling.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What primary challenges do you face to grow your small business?&nbsp;<\/h2>\n\n\n\n<p>According to Startups.co.uk facts,&nbsp;<\/p>\n\n\n\n<p><em>\u201c24% of individuals believe economic instability is the primary factor that impacts business growth.\u201d&nbsp;<\/em><\/p>\n\n\n\n<p>Here are other key challenges for UK SMEs in 2024:<\/p>\n\n\n\n<p>Getting quick finance or funding is the most challenging aspect.&nbsp;<\/p>\n\n\n\n<p>According to RSM.co.uk stats,&nbsp;<\/p>\n\n\n\n<p><em>\u201cOnly 33% of businesses can access the funding easily in the UK\u201d.<\/em><\/p>\n\n\n\n<p>&nbsp;Additionally, 52% of businesses wish to seek funding within 6-12 months. It reveals business plans to grow business regardless of interest rates and other factors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How can you grow your business with the best funding options?&nbsp;<\/h2>\n\n\n\n<p>A business loan is the most popular way to finance your business needs. According to BritishBusinessBank, \u201cthe use of external finance by small business rose in 2023 from 41% in Q1 to business loan is one of the easiest ways to fund your requirements. Other aspects may help&nbsp;grow your small business&nbsp;swiftly in 2024.<\/p>\n\n\n\n<ul>\n<li>Business loans<\/li>\n<\/ul>\n\n\n\n<p>As mentioned above, business loans are one of the easiest ways to secure quick finance. You may get up to \u00a325000-\u00a32m as secured and unsecured business loans. One uses it exclusively for business purposes. You can consider secured business loans to finance a flexible amount needed when pledging an asset.<\/p>\n\n\n\n<p>You can use a business loan for inventory updates, streamlining working capital, Hiring, and business expansion. According to a source,&nbsp;<\/p>\n\n\n\n<p><em>\u201cYou need at least \u00a322,000 to fund the business\u2019s operations in the first year.\u201d&nbsp;<\/em><\/p>\n\n\n\n<p>The figure breaks into the business needs like:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Average amount you need for business operations and cost split<\/td><td>\u00a322,518<\/td><\/tr><tr><td>Legal fees<\/td><td>\u00a37500<\/td><\/tr><tr><td>Account management<\/td><td>\u00a34500<\/td><\/tr><tr><td>HR management<\/td><td>\u00a35000<\/td><\/tr><tr><td>Company formation<\/td><td>\u00a35518<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul>\n<li>Guarantor loans<\/li>\n<\/ul>\n\n\n\n<p><em>Based on a survey-<\/em><\/p>\n\n\n\n<p><em>&nbsp;\u201c34% of business owners struggle to make a difficult choice of operating as a guarantor on a business loan\u201d.&nbsp;<\/em><\/p>\n\n\n\n<p>&nbsp;However, it is still the best way to secure quick and high-amount finance.&nbsp;<\/p>\n\n\n\n<p>Guarantor loans require the business owner to provide a guarantee to secure funding. It can be a family, friend, business partner, Director, or company stakeholder. According to a fact- \u201c<em>businesses in the Finance and Accounting sectors take a loan against personal guarantees the most.\u201d&nbsp;<\/em><\/p>\n\n\n\n<p>It is the best option for businesses operating with a poor credit history.<\/p>\n\n\n\n<p>The qualification largely depends on the business\u2019s affordability. The lenders conduct basic checks to analyse the borrowing potential. Thus, you may know the loan approval chances with&nbsp;<a href=\"https:\/\/www.thebusinessfunds.co.uk\/loans\/business-loans\">guarantor loans with no credit check<\/a>&nbsp;facility.&nbsp;<\/p>\n\n\n\n<p>The no credit check facility means- the credit assessment does not get recorded. Instead, it helps a business understand- approx., APR, interest costs, loan repayments, and total loan costs according to your chosen loan term. It works like a pre-qualification process that helps you know affordability and compare the best options.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Benefits of choosing a guarantor loan for business<\/h4>\n\n\n\n<p>The primary benefits of choosing a guarantor loan for your business needs are:<\/p>\n\n\n\n<ul>\n<li>Working capital loans&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Working capital includes any business asset in liquid or tangible form. It includes aspects like-&nbsp;<\/p>\n\n\n\n<p>You can calculate working capital by this formula<\/p>\n\n\n\n<p>WORKING CAPITAL = CURRENT ASSETS-CURRENT LIABILITIES<\/p>\n\n\n\n<p>You may secure working capital loans by revealing your affordability. You may qualify if:<\/p>\n\n\n\n<ul>\n<li>You have an operating history of over 6 months or a year<\/li>\n\n\n\n<li>You are an LLP or a limited company<\/li>\n\n\n\n<li>Your business is in the UK<\/li>\n\n\n\n<li>You have a minimum monthly turnover of \u00a35000<\/li>\n<\/ul>\n\n\n\n<p>You may get a working capital loan of up to \u00a325000 for needs if you meet the criteria.<\/p>\n\n\n\n<ul>\n<li>Growth Capital Loans&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you want to&nbsp;grow your small business&nbsp;by boosting the bottom line, growth capital loans may help. Capital is an important aspect of consistent business growth. Limited cash reserve, depleting one or negligible one impacts operations.&nbsp;<\/p>\n\n\n\n<p>Startups and small businesses in the UK marketplace struggle with sustaining sound capital. Around 38% of startups fail due to a capital shortage in the first year of business operations. Thus, it is ideal to find experts who can help boost business revenue and growth.<\/p>\n\n\n\n<p>Growth capital loans help you fund needs like-<\/p>\n\n\n\n<ul>\n<li>Equipment purchase<\/li>\n\n\n\n<li>Investing in technology and software<\/li>\n\n\n\n<li>Paid and organic marketing efforts<\/li>\n\n\n\n<li>Paying existing and other debts<\/li>\n\n\n\n<li>Revise the business turnover<\/li>\n\n\n\n<li>Angel investors&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Angel investors are knowledgeable and experienced individuals who invest in a business in return for an equity percentage. A startup may benefit from investments and careful guidance at every step.<\/p>\n\n\n\n<p>According to UK Business Angels Association (UKBAA)<\/p>\n\n\n\n<p><em>&nbsp;\u201cAngel investors invest between \u00a35000-\u00a35,00,000 in a company for a 15-30% return on equity. Eventually, they expect a 10-30% return on investment within 10 years.\u201d<\/em><\/p>\n\n\n\n<p>Additionally, if you choose an angel investor belonging to the Seed Enterprise Investment Scheme (SEIS), you can claim tax relief. The maximum amount you can claim as tax relief is \u00a3100000.&nbsp;<\/p>\n\n\n\n<p>You can spot angel investors working with the SEIS on platforms like LinkedIn.<\/p>\n\n\n\n<ul>\n<li>Contact brokers for business finance<\/li>\n<\/ul>\n\n\n\n<p>According to a fact,&nbsp;<\/p>\n\n\n\n<p><em>\u201c70% of businesses facing constant rejection contact a professional business finance broker\u201d.&nbsp;<\/em><\/p>\n\n\n\n<p>Additionally, with increased business loan interest rates (6% as of January 2024), choosing the right loan is essential.<\/p>\n\n\n\n<p>Business loan brokers help a startup or small business secure funds quickly. They do so by:<\/p>\n\n\n\n<p>Thus, hiring an experienced&nbsp;<a href=\"https:\/\/www.thebusinessfunds.co.uk\/\">business finance broker<\/a>&nbsp;helps you save time, fetch the most affordable deal and avoid confusion. Facilities like 1:1 interaction, flexibility to adapt to changing business situations and the latest technologies quicken the loan approval process. Additionally, the brokers charge a commission fee for their services. It is separate from the repayments that one pays to a direct lender for their services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bottom line<\/h2>\n\n\n\n<p>These are some most of the flexible and best funding options for small business owners. If you want to&nbsp;grow your small business&nbsp;with quick funding\u201d- these may help. The most comfortable of these is contacting a business loan broker for all your business finance requirements. You may get it quickly with professional assistance. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The proportion of trading businesses reports a drop from 26% in January 2024 to 22% in February 2024. Meanwhile, 55% of businesses reported static business turnover during the period. 18% of companies believe low customer demand is the prime reason behind business slowdown. Other reasons like rising energy costs and costly manufacturing materials also impact &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.thebusinessfunds.co.uk\/blog\/5-funding-options-to-grow-your-small-business-in-the-uk\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;5 Funding Options to Grow Your Small Business in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[28,67],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/posts\/413"}],"collection":[{"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=413"}],"version-history":[{"count":2,"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/posts\/413\/revisions"}],"predecessor-version":[{"id":417,"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/posts\/413\/revisions\/417"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/media\/415"}],"wp:attachment":[{"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thebusinessfunds.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}