Small businesses struggling to access finance could be thrown a lifeline thanks to a new Government scheme.
The initiative matches businesses who have been unable to secure finance from big banks with alternative options which could be the difference between survival and failure.
DY Director, Mark Bramall, said the new scheme was making a huge difference to small businesses all over the UK.
“The project requires nine of the UK’s biggest banks to pass on the details of small businesses which have been rejected for finance to three finance platforms – Funding Options, Business Finance Compared, and Funding Xchange.
“The platforms share the contact details with alternative finance providers to start a conversation between the small business and any finance provider who expresses an interest in them.” Mark said the banks were required to offer access to the finance platforms, but businesses needed to give permission for their details to be shared.
“If the Government’s small business funding initiative isn’t suitable for your business, you may be able to secure a grant which can be a cost-effective way of financing.
“Grants are usually provided by local Councils, the Government, and charities, and they are typically non-repayable, which makes them extremely sought-after and so there’s fierce competition to secure them. But Government grants are usually only offered to businesses operating in specific sectors and for specific projects, and you may need to cover part of the cost of the project, or match the funds you receive.
“There are other sources of Government funding such as the Government-owned British Business Bank, which works with a variety of partners including other banks, venture capital funds, web-based platforms, and leasing companies.
“You could also consider leasing any equipment you need which will help with cashflow as you won’t have to spend a lot of money in one lump sum – but be careful as monthly leasing can be more expensive than purchasing equipment outright.
“Hire purchase agreements are another option. They allow you to acquire business assets without having to pay upfront for the entire item, and contracts usually include an option to purchase at the end of the agreement.
“Small businesses need to be flexible and resourceful when it comes to securing finance, and ensure they explore all the available avenues – there’s always help on offer if you know where to look.”
Dyke Yaxley Director, Mark Bramall