No matter what industry you’re in, securing finance for your business is a key part of growth and success. However, with so many business finance options available, working out which type provides the best support for your business can be challenging How do you find the right path?
That’s where the team at FundingRound comes in. We’re experienced in securing grants for business, alongside other finance and are here to help make the world of business finance clearer and simpler. We keep up-to-date with the grant landscape and can help identify available options for your business as well as provide support through the process if required.
Let’s explore how grants can fuel your business’s growth.
A few grant basics
- Most grants will provide a proportion of funding for your project – you need to provide the rest (it’s called matched funding).
- ALWAYS seek grant approval before making a formal commitment to any part of your growth project.
- Grant investment requires an outcome which will make an impact on the business or community. The outcomes vary by grant and sector, but an example may involve job creation or reducing the carbon footprint of the business.
Grants for SMEs
Small and medium-sized enterprises (SMEs) are the backbone of the economy, yet access to finance remains a challenge for many of them. This can be due to their complex needs but is also a result of the changing dynamics in the banking and SME lending market.
Grants for SMEs can range from local authority funds to regional and national funds, designed to stimulate economic growth with sector specific grants supporting innovation, sustainability, and expansion.
These grants not only provide financial assistance but often come with additional support, such as business advice and networking opportunities. It’s essential for SMEs to stay informed about these opportunities and understand how to align their business goals with the grant criteria.
Specific grant funds change over time and your local growth hub can direct you to current funds that are applicable (eg Business Lincolnshire/ D2N2 Growth Hub/Sheffield City Region Growth Hub to name a few in the East Midlands).
Business grant options for start-ups
For start-ups, the initial stages of business development are critical and often require significant investment and careful planning. Statistically, 20% of start-ups last less than a year and 60% survive less than 3 years. Traditional lending routes might not always be accessible or the best fit for your innovative ideas.
Fortunately, there may be another option — grants. Unlike loans, grants offer financial support without the obligation to repay, giving your start-up the breathing room it needs to flourish.
The start-up period for a business is defined as the first 2-3 years, and whilst there are a limited number of grants to support a start-up on day 1, the options begin to open up once you’ve completed your first year’s trading.
As explained above, the best route to identifying grants in your area is to talk to your local growth hub.
How to apply for business grants
Applying for business grants can seem daunting, but with the right approach, it’s entirely manageable. The key is in preparation and understanding the grant’s objectives — here are some tips.
- Start by thoroughly researching the grants available and their eligibility criteria.
- Tailor your application to highlight how your business aligns with the grant’s goals, focusing on the impact the funding will have on your business and the wider community.
- Keep your application clear, concise, and compelling.
- Remember, attention to detail and adherence to application guidelines are paramount. Particular attention on the grant outputs and criteria is required.
Grants support from FundingRound
With our deep knowledge of regional grant funding in Lincolnshire, Nottinghamshire, Derbyshire, Yorkshire and further afield, the team at FundingRound is here to ensure you don’t miss out on valuable funding opportunities. Our approach is to always consider the grant landscape and find a scheme that fits your business, making the search for grants and financial support as smooth, seamless and straightforward as possible.
Navigating the world of grants for your business doesn’t have to be a solo journey. With FundingRound by your side, you’ll have a knowledgeable and friendly finance broker, dedicated to finding the right funding solutions for your complex borrowing needs.
Get in touch for more information and support.