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Government Grants and Financing Options for Start-Up Business
 

Government Grants and Financing Options for Start-Up Business

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This is the latest presentation brought to you by Wisteria Formations....

This is the latest presentation brought to you by Wisteria Formations.

This is the latest in a series of SlideShares of information with regards to company formation, company registration, and all the considerations for your newly set up company.

After setting up a company, raising finance to keep going or start growing is an important worry to many new company directors. Limited company has the benefit of shares and raising money through share capital, though this slideshow highlights the numerous options available to you.

When you register a company, it is important to be aware of all important issues. Please view our other slideshows for more advise! Or, feel free to visit us at www.wisteriaformations.co.uk

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    Government Grants and Financing Options for Start-Up Business Government Grants and Financing Options for Start-Up Business Presentation Transcript

    • GOVERNMENT GRANTS ANDFINANCING OPTIONS FOR START-UPSWhat grants are available following companyregistration?What other options are there for financing?
    • This presentation looks to highlight some of thefinancing options that are available to new business following their company formation.One of the most difficult tasks when starting a newbusiness is achieving funding to start, or grow yourideas. There are a number of ways a company canraise finance, though in a move to encourage start- ups there are a number of government grants available to help you.
    • WHAT ARE GOVERNMENT GRANTS? A Government Grant is a payment from the government to your business, given to complete a project or behave in a certain way. They are designed to encourage the growth of business, and in particular areas that are beneficial to the economy. For example, certain grants encourage innovation.
    • SOME OF THE GRANTS AVAILABLE(2011/12)... Some of the financing schemes that are currently available include...  National Insurance tax breaks  Research & Development grants/tax breaks  Government guaranteed lending  The Prince’s Trust loan
    • NATIONAL INSURANCE HOLIDAYThe government currently offer new businesses a National Insurance (NI) “holiday”, which is essentially a tax break for new employers.You are able to claim up to £50,000 off your NI costs, when employing up to ten employees following company registration.The NICs (National Insurance Contributions) of the employer can be offset against other tax liabilities. However, business in London and the South-East are exempt from this particular scheme.
    • R&D ENCOURAGEMENT There are a number of government schemes aimed at encouraging Research & Development (R&D) for businesses following company formation.  R&D Grants are available for those planning to research new products/services. These will pay some of the costs, or match the investment from your newly set up company.  R&D Tax Credits provide tax relief on research and development that brings advances in the industry. Tax relief can be obtained by small-medium enterprises (SMEs) and larger companies, under different circumstances.
    • LOAN GUARANTEES There are a number of different schemes that the government use in order to guarantee lending and short-term finance. These schemes can help limited companies and other types of business obtain important finance when cash flow is a problem. There are a number of government approved lenders, and all applications to obtain a loan guarantee should be made through these bodies.
    • THE PRINCE’S TRUST LOAN This loan is aimed at unemployed persons between the age of 18 and 30 years, encouraging them to start their own business. It includes:  A loan of £500-5000, with a choice over repayment term.  Help in writing a business plan.  A 6-month repayment holiday.  Free business banking and a fixed interest rate.  Ongoing support. This scheme is offered to start-ups by The Prince’s Trust in association with Barclays.
    • OTHER TAX ADVANTAGES FOR NEWBUSINESSESAfter you register a company it may be important to consider the tax position of your business. There are a number of schemes designed to give a tax advantage to new businesses: Discounted business rates if locating in certain “enterprise zones”. “Capital allowances” claimed against expenditure, for capital equipment purchased for the business. Tax relief on R&D, as previously discussed.
    • OTHER WAYS TO RAISE FUNDING There is a chance your newly set up company won’t be eligible for grants, in which case you’ll need to include other methods of financing.  Bank borrowing: e.g. overdraft, loan  Non-bank borrowing: e.g. a loan from friends/ family, or commercial loan providers  Business Angels: individuals that will invest in young businesses for equity  Equity finance: selling shares in your company to raise capital – an advantage or company formation
    • W: http://www.wisteriaformations.co.uk@: formations@wisteria.co.ukT: +44 (0)844 893 0808 A BIT ABOUT WISTERIA FORMATIONS... UK Company Registration for £24.99. Easy 10-step application process online. Free consultation with business, tax and accounting experts to get your business off to the best start!