A guide to funding
The decision to examine funding for your business project should not be taken lightly as they are governed by a variety of rules and regulations.
Funding in the form of grants are the most sought after because historically grants are interest free and non-returnable. However, this has changed and grants are now only awarded under strict rules and conditions. Some of the rules include match funding, location, type of organisation, security and the purpose of the project. Failure to meet the conditions will lead to an unsuccessful application, withdrawal of future funding and the possibility of repaying grant money you may have already received.
The money awarded through loan schemes are repayable over a fixed term at various rates of interest to be agreed with the funding provider. Loans are widely available from a variety of sources including your high street banks. Specialist funders can provide loans to start up businesses but a formal process will be in place which will often involve pitching your idea and working with a mentor.
When applying for any funding the organisation may request:
- a business plan with financial forecasting
- a pitch presentation
- validation that your project will succeed
- information about the project members
- confirmation of alternate sources of funding
See further information about grants and loans on the Business Lincolnshire website >>