Category: Finance Options
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Shares and shareholders
Selling shares in your company is one way of raising long-term finance for your business. This is also known as equity finance. The advantage of equity finance is that you don’t always have to repay the finance or pay interest, as you would with an overdraft or bank loan. Shares in a company represent ownership.…
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Innovation, research and development grants
The UK government encourages businesses in technological innovation and research and development (R&D) projects. If you plan to research and develop new products or services, you can get free information and advice and may also be eligible to apply for financial support – an R&D grant – or for R&D tax credits. There are also…
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Government support for businesses
The government provides support to help businesses to: There is a range of government support available to businesses, through advice, guidance, information, grants, training and other services. These services have been brought together for businesses in England under the Solutions for Business portfolio. Solutions for Business is only available in England. Government support for businesses…
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London Stock Exchange: AIM
AIM, sometimes referred to as the Alternative Investment Market, is one of the equity markets of the London Stock Exchange. It is a market for smaller, growing companies, and is an alternative to the London Stock Exchange Main Market. AIM can assist companies to raise capital through selling shares of their business to investors. The market attracts a different type of investor…
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London Stock Exchange: Main Market
The Main Market is the London Stock Exchange’s market aimed at larger, more established companies and is one of the biggest stock markets in the world. Your company must fulfil certain requirements to join, but you can then benefit from an increased profile and visibility, as well as access to capital for growth and development.…
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Bank finance
Whether you are starting or expanding a business, you may need to seek financial help from an external source. Banks offer short- and long-term debt finance via loans and overdrafts as well as other types of finance. These are available by application to any high street bank, usually involving a quick decision process. This guide…
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Business angels
Business angels (BAs) are private individuals who invest in start-ups and young companies with good growth prospects, in exchange for a share of the company’s equity. Most BA investments range between £10,000 and £750,000. BAs are free to make investment decisions quickly and often specialise in particular industrial sectors or local companies. Many take an…
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Venture capital
Venture capital (VC) funding is a form of private equity investment, where a business obtains long-term funding in exchange for a share of its equity. VC funding is mainly sought by start-ups or new businesses with high growth potential. Companies can also use it to expand, fund management buy-outs or buy-ins, or develop new products.…
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Acquire assets and borrow money tax efficiently
Most businesses will need to borrow money at some point, whether when starting up, funding growth or purchasing equipment. It is possible to cut the cost of borrowing by doing it in a way that reduces your overall tax bill. Tax relief on borrowings is not sufficiently exploited by some businesses. Tax relief may offset…
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Financing from friends and family
It’s common for owners of small and start-up businesses to look to relatives and friends for support when starting the business of when they need additional business funding. This can work well, but often these arrangements are informal and based purely on trust and verbal assurances. However any confusion about the agreement could damage personal relationships, so…
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Raise long-term funding through debt capital markets
Most businesses fund expansion by reinvesting their existing profits, or securing bank or equity finance. However, an alternative option for medium and large businesses in need of long-term finance is to raise money through bond markets. By making use of bond markets – also known as debt capital markets – it may be possible for your business…
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Non-bank finance
If you are starting, expanding or restructuring a business, you may need to secure finance. People in business commonly approach banks for financing, but they are not the only option. Other lenders may be more competitive or more suitable for your business, such as: We collectively refer to these as non-bank finance. If your business has…