The Islington Chamber of Commerce is here to help local businesses with all their business queries. One of the most popular issues that comes up is the need for funding and finance. Please see our guide below on possible sources of finance for your growing business.
www.crowdcube.com – Crowdcube gives the UK’s best entrepreneurs and business pioneers a newfangled way to raise business finance by tapping into a ‘crowd’ of like minded trendsetters willing to invest smaller amounts of cash in exchange for rewards and a stake in their business.
www.capitalforenterprise.gov.uk – CfEL is the UK Government’s centre of knowledge, expertise and information on the design, implementation and management of finance measures to support Small and Medium Size enterprises (‘SMEs’) across the UK.
www.angelcofund.co.uk – The £50m Business Angel Co Investment Fund (Angel CoFund) was launched in November 2011. The fund has been created with a grant from the Regional Growth Fund and invests alongside business angel syndicates from across England.
www.marketinvoice.co.uk – MarketInvoice offers companies a more flexible, cost effective and better way to finance their business. By selling your invoices to a network of institutional investors, companies can release capital tied up in invoices in real time.
www.mymicroinvest.com – At the moment, Mymicroinvest (MMi) is a Crowdsourcing and Crowdfunding machine engine for entrepreneurs that wish to confront their start-up project with a community of supporters. We provide a platform for entrepreneurs to connect their business ideas with supporters, potential partners and business angels networks to achieve their project.
www.enterprisenation.com/fund101/ – If you have an idea for a business and need a bit of cash to get started or you’re running a small business and need up to £500 to buy equipment, promotion flyers, hardware etc, you can apply. Apply for between £50 and £500 and once you receive the money, the only thing we ask is you agree to be profiled on the site so we can see how you’re getting on. The money doesn’t have to be paid back; it’s for you to use on your idea or business.
www.bis.gov.uk – Access to Finance - The Government’s aim is for more UK entrepreneurs and businesses to be able to access the finance they need to enable greater levels of enterprise, whether expressed through start-up or growth.
www.businesslink.gov.uk -Business Link is government’s online resource for businesses. It contains essential information, support and services for you and your business – whether you work for a large organisation or are on your way to starting up.
Business Finance Partnership (BFP)
This is a new Scheme that was announced by the Government on the 29 November and will be launched soon.
How does it work? The BFP will invest an initial £1bn in loan funds, alongside private sector co-investors. These funds will then lend to mid-sized businesses, helping to diversify the channels of finance available to them. The Government will also consider options for investing through other non-bank lending channels that reach SMEs.
When will it be up and running? The Government is now engaging with relevant stakeholders on the BFP, and inviting expressions of interest from potential fund managers for the Government’s co-investment. Further details have been set out at http://www.hm-treasury.gov.uk/d/business_finance_partnership.pdf.
The Government expects to commit the first funding to loan funds in spring 2012.
Who will deliver the scheme?
HM Treasury will operate the BFP, making decisions about which loan funds to invest in. However, the managers of those loan funds will then make individual lending decisions. It will focus initially upon co-investment, with private sector investors, in managed funds that lend directly to UK businesses. The Government is currently inviting expressions of interest from potential fund managers for the Government’s co-investment.
Who is eligible? Businesses in the UK with a turnover of up to around £500m. The exact definition will be set early in 2012.
Seed Enterprise Investment Scheme (SEIS)
This is a new Scheme that was announced by the Government on the 29 November and will be launched soon.
How does it work?
SEIS will provide income tax relief of 50% for individuals who invest in shares in qualifying companies, with an annual investment limit for individuals of £100,000 and cumulative investment limit for companies of £150,000.
In addition, the Government will offer a capital gains tax holiday for investments made into the new scheme. This will provide for a capital gains tax exemption on gains realised on disposal of an asset in 2012-13 and invested through SEIS in the same year.
When will it be up and running? The seed scheme will be operational from April 2012; the CGT holiday is time-limited to the tax year 2012-13 to 2013-14.
NB: The ICoC cannot be held accountable for any avenues of funding sought through the above methods, the Islington Chamber is completely independent of each organisation and has no vested interest.
