new start up funding

[S1M VP]

hi all

I'm in process of setting up a new business and have been told that I might be able to get some funding to help with start up costs, maybe up to 50%

Anyone know about this?

Thanks

[pgilc1]

good luck with that.

grants / funding have been desperately hard to get for quite some time

[Jack Blag]

There's always Dragons' Den or VCs.

[sa_20v]

Drop me an email, I'm always on the look out for opportunities - and besides, my cash is probably better off in a fire than in the bank at the minute! Oh, and I'm happy to sign NDAs etc - unlike many investors it would seem.

[jamesuk28]

http://www.businesslink.gov.uk/bdotg/action/layer?...

[The Moose]

What sector/market??

[Windsorphil]

Hi Paul,

It really depends on the amount, your location, the industry. Mrs Windsorphil and I have set up a manufactring business, but becasue we live in Berkshire SEEDA, and the local business links were useful for advice, but the grants and other incentives were limited, they take a long time to qualify for and of course the banks were not much help.

We are currently halfway through a round of fund raising through the EIS and CVS schemes. Like many things, I found you have to go out and do it yourself, especially if you want to move faster than glacial speeds - I think we can reclaim some grant monies for develeopment and capital so far, and that's what I shall be using SEEDA for.

Rumour has it that if you live in other parts of the UK such as Wales, there are enhanced schemes for start-ups. As for the Small Firms Loan Guarantee Scheme - it seems very tough to qualify, and of course you're reliant on the skills of the local business banker who looks after you.

Edited by Windsorphil on Monday 2nd March 10:38

[Dissident Dragon]

Windsorphil said:

Rumour has it that if you live in other parts of the UK such as Wales, there are enhanced schemes for start-ups. As for the Small Firms Loan Guarantee Scheme - it seems very tough to qualify, and of course you're reliant on the skills of the local business banker who looks after you.

Edited by Windsorphil on Monday 2nd March 10:38

The grant regime in Wales is probably the most generous in the UK. The Single Investment Fund provides support of up to 50% of capital spend over the duration of the project (for small companies). For grants of up to £75,000 there is no requirement to create jobs. For grants in excess of £75,000 the grant award is linked to the jobs created and the skills/salary levels of those jobs.

For anyone considering setting up in Wales or re-locating to Wales I would advise speaking to a specialist grant consultant initially. Yes I am one but there are many here. How an application is presented can have a huge bearing on the level of grant awarded. Some consultants even work on a no-win, no-fee basis.

[blackcab]

Small firms loan guarantee scheme - speak to natwest its backed by the DTI

[jamesuk28]

blackcab said:

Small firms loan guarantee scheme - speak to natwest its backed by the DTI

No longer exsists, hence my link above

[blackcab]

jamesuk28 said:

blackcab said:

Small firms loan guarantee scheme - speak to natwest its backed by the DTI

No longer exsists, hence my link above

I'll get my coat !

[BigLepton]

jamesuk28 said:

blackcab said:

Small firms loan guarantee scheme - speak to natwest its backed by the DTI

No longer exsists, hence my link above

Never did exist in reality, I was told less than 1% of applicants ever got any money out of it. I think they have replaced it with the Enterprise Finance Guarantee which is equally as useless. The key bit of the small print is:

"Note that all lending decisions will be made on a commercial basis and are the sole responsibility of the participating bank or fund. No government department, agency or officer has any influence over the decision making process."

They masquerade as government schemes but in fact they are entirely reliant upon the decisions of banks and banks aren't lending.

[seaninog]

BigLepton said:

jamesuk28 said:

blackcab said:

Small firms loan guarantee scheme - speak to natwest its backed by the DTI

No longer exsists, hence my link above

Never did exist in reality, I was told less than 1% of applicants ever got any money out of it. I think they have replaced it with the Enterprise Finance Guarantee which is equally as useless. The key bit of the small print is:

"Note that all lending decisions will be made on a commercial basis and are the sole responsibility of the participating bank or fund. No government department, agency or officer has any influence over the decision making process."

They masquerade as government schemes but in fact they are entirely reliant upon the decisions of banks and banks aren't lending.

True, the scheme isn't working at full speed yet but it's getting there. A few important points:

1. The new Enterprise Guarantee Scheme (where Govt guarantees 75% of the loan) and its bigger brother the Working Caital Guarantee scheme (where the Govt guarantees 50% of the loan) differ from the old SFLG in that you don't have to wait until you are refused a regular bank loan before you can apply. In the the past the SFLG was only open to those refused a regular loan, not so wth the EFG and WCG; you can apply for these directly

2. Feedback I'm hearing is that knowledge of the schemes and enthusiasm for the varies not just from bank to bank but literally from Bank Manager to Bank Manger - shop around!

3. I'm also hearing that in general, but mindful of point 2 above, it is the nationalised banks like RBS/Natwest, HBos and now Lloyds that are keener to lend. Not surprising if your majority shareholder and primary financial Backer has a strong vested interest in you doing so!

I'm actually reasonably confident that by the Summer we'll start to see these schemes ease some of the current credit crunch. However, I think its effect will be temporary before the next leg downwards in this crisis kicks in. Grab the money while you can and hang on to it!

[wattsm666]

Under the EFG you will be required to give a personal guarantee, so the gov't 75% backing isn't quite as generous as it first appears. They will only bail the bank out after your PG has been exhausted.

[S1M VP]

Thanks for the replies everyone ... interesting reading.

I spoke to Business Link - they advised me to speak to the council

I spoke to the council - they advised I speakt to LEGI

LEGI were very un-commital until I pushed the conversation harder, when it turned out that they only have £500 to award each startup and the qualification for that is really for the 'disadvantaged', so I would be unlikely to get it - although whilst £500 is better than a kick in the teeth, it wouldn't really provide much assistance.
The girl then advised me to speak to Business Link again.

Was also advised to speak spoke to the Chamber of Commerce - but ended up talking to the same woman who was with LEGI (same people apparently).
They have offered to get one of their Business Mentor's to take a look at my business plan though - although I honestly don't anticipate much benefit will come from that.

Looking like the best/only route will be to fund this 100% myself, unless the banks will offer some assistance.

Regards of sector - looking at recruitment/contract type resource.
I appreciate its a difficult sector, but have a large network of good friends in influential places that it's about time I called into action.

Aware that Wales is a place which offers 'incentives for new business' but also aware they want to keep the business in Wales and I intend keeping it simple for now.

Does anyone have examples of a Business Plan?
Can create one from scratch, but if anyone has, it'd help!

[Ultraviolet]

How about London Technology fund or their regional equivalent?

UV