A surge of entrepreneurs in the U.K. developing their own businesses has been witnessed in the past couple of years and is geared to increase further towards 2015 and beyond. Hundreds of thousands of businesses have been registered to Companies House in 2013 alone, a record high rise of 8% from 2012. If you have plans on engaging a new venture, there are various ways to finance and develop your business. You first have to design a business plan that can help you specify just how much funding you would require to develop and expand your startup company in its first two years. Create Business Growth spoke to CBonine.com about how to proceed after developing the finished business plan and they specifically told us that opening a new bank account is usually the next step towards a successful banking strategy for the new business. Let’s have a look at other methods on how to find the funds for your new business.
Bank funding and government loans
The startup loans introduced by the government scrapped the age restriction for young businessmen and businesswomen. If you are an entrepreneur with a great business plan, you may apply for loans up to £25,000 to help you start your business. The loan must be repaid with a term of up to five years, with 6% interest payable a year. Banks also show their eagerness to help entrepreneurs in their business endeavors. From small to medium-sized ventures, banks all over the country offer loan services to businesses that have a good credit record and meet their lending specifications. These banks offer benefits to attract entrepreneurs that may ultimately cut costs and expenses for your start-up.
Clydesdale Bank’s financing
Clydesdale Bank offers a business loan that is a viable option to help sustain and grow your start-up company as challenges in funding and finance occur invariably.
Clydesdale Bank’s business loan solution provides:
- Over £25,000 to £10,000,000 of loans wherein an arrangement fee can apply.
- Option to utilize variable or fixed rates or a mix of the two. The fixed rate option may follow an early repayment charge in case of early repayment during the fixed rate term.
- Up to a 15-year term on variable rate, and a 5-year term on fixed rate.
- *Interest Rates
- With respect to borrowing facilities, interest margins are individually negotiated depending on your circumstances – for details, consult your relationship manager
- The rate for Fixed Rate loans is agreed once the deal is transacted. Consult your relationship manager for more details
- For Variable Rate loans, debit interest priced to LIBOR (London Inter Bank Offered Rate) and for Fixed Rate loans, there is an agreed fixed rate
- Monthly or quarterly applied interest
- Consult your relationship manager for more information on related costs. Other charges may apply
- Full terms and conditions available on request.
Keep minimum costs
When designing your business plan, you must be prudent when it comes to cost control and projecting expenses. Determining and controlling your working capital as well as start-up costs must be a crucial factor in your business venture. Regularly reviewing costs is good business practice; if you are more frugal with regards to running your business, the less finances you’ll need. By cutting costs, you ultimately churn in more revenue for your start-up.