Start Up Loans: Government Funded
Currently the Government’s project regarding start up loans have spent almost £70 million and have backed 13719 businesses. Moreover, they have a charismatic chairman, ex dragons den dragon, James Caan and also the support of the Prime Minister. The simple idea of the project is to provide both funding and mentoring to those new and growing businesses that currently lack these criteria and have an innovative idea that has not yet been satisfied in the market.
To start with, you must fill out an application form online giving them some basic contact information. Following that, they will contact an industry expert who will be able to help you turn the idea that you have into a working business plan. They are known as delivery partners and will guide you through the process of building a successful business plan.
Once that part of the process is complete, you will then have to present your business plan to see if they will consider you suitable for funding. The key characteristics that the delivery partner will be looking for are confidence, that your numbers work out and are realistic and then most importantly, whether they think your business can ultimately be a success. With your delivery partner aiding you, it gives you a very strong position to secure funding.
If you are deemed worthy of investment, the money will be transferred into your account and you get exclusive offers from Startup loans partners. You will have to start paying back the loan 12 months after you have been accepted for funding, that is the key thing to remember, it is a loan, not a grant. You will have to pay the loan back with interest on top, so if you think you would be able to go alone, without the help of this service; it can be very beneficial option. However, you will be able to meet contacts in your industry, see if your business plan has credibility and get discounts that other businesses will not receive. All of this will put you at an advantage to other new businesses, but the cost is that you have to pay the money back with interest. You must think if your business is going to make large profits in year 1, because you will still need to eat and drink during this time while paying back this loan.
Ultimately, the decision on whether to apply to the program is down to you. If you have what you believe to be a really good business idea, but don’t have the funds to implement it, then this program can help. However, with it come some risks and it is down to you to decide if you can truly live with the consequences if the business fails.