Almost 50% of UK small businesses are set to grow in 2015, however many still don’t know of the alternative funding options available to them.
Figures released in a recent report by the British Business Bank, set up by Secretary of State for Business Vince Cable in 2012, revealed that 33% of SMEs were unaware of potential funding through local authority grants and the government.
1,000 small businesses were surveyed by the Small Business Finance Markets 2014 in order to assess the condition of the financial markets for SMEs.
While, at 68%, the majority of businesses believed themselves to be ‘confident in their ability to obtain external finance,’ 65% hadn’t heard of many possible avenues; peer-to-peer lending, crowd funding, mezzanine finance and export and import finance.
This lack of awareness reveals that more needs to be done in terms of informing small business owners on finance options.
Commenting on the report, Vince Cable agreed:
‘This is particularly important given the findings also show that almost half of British small and medium enterprises plan to expand in the next year. I am confident more businesses will be able to realise those ambitions thanks to the new finance on offer, especially on the equity side.’
Government funding options for buying a business should be noted if that is your aim. But what are they? How do you know whether you’re eligible and what for?
Take a glance at the government's website, which provides you with a filter and allows you to see the finance options available to you. As well as giving you the opportunity to select the support you’d like (grant, loan, equity, etc.) you can also see the local support available by providing your postcode.
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