Sources of Business Finance

New businesses need finance to cover the cost of equipment and expenses before sales generate enough cash to make the operation self supporting.  Whilst most small businesses start up with capital from the owners themselves, there are a number of other sources of financial support.

Enterprise Northern Ireland Loan Fund

A partnership of funders (Enterprise NI, Invest NI, International Fund for Ireland and the European Union) can provide unsecured loans from £500 upwards with flexible repayment terms.  The loan fund can be accessed through us here at The Acorn Business Centre.

Banks/Building Societies

Altogether, the banks lend about £40 billion to British businesses each year Banks are increasingly targeting small businesses, supplying dedicated information and financial services.  Banks can offer;

• Overdrafts. This provides the business with short-term finance, effectively by running a negative balance oh the bank account, up to an agreed limit
  
• Loans. Loans are funds borrowed for a fixed term which are paid back through time with interest.  Interest may be fixed or linked to the base rate.

Invest NI

Invest NI offer business advice and a variety of different grants, depending on the nature of your business.  It is worthwhile to contact your local office to find out if your business would be eligible for support.  Contact the North Eastern Regional Office on 028 2564 9215.

Business Angels

Business Angels are financially wealthy people with extensive business experience who provide finance and management expertise to a business, usually in return for a share of the profits. Business Angels are a more appropriate source of finance to small businesses than Venture Capitalists as the amount they invest is usually smaller and they will offer assistance at an earlier stage of the business' development. Contact the Business Angels Network on 020 7329 2929.
www.bestmatch.co.uk

Prince's Trust

The Prince of Wales' Charity helps young people aged 18-30 from disadvantaged backgrounds to start their own business. They provide business advice, a test marketing grant of £250 and loans of up to £5,000. Contact The Prince's Trust on 028 7186 4689.
www.princes-trust.org.uk

The Royal British Region

The Legion's Small Business Advice Office offers ex-service people free advice on small business practice. They also have a small business loan scheme to help ex-service personnel start and grow their own businesses. You should write with details of your business to The Small Business Advice Office, The Cottage, Ordnance Road , Tidworth, Wiltshire , SP9 7QD.

EU Grants

Various EU funding Streams are available to businesses.  To find out what's currently available, log onto www.eugrants.org