Business Finance – Gaining a Business Grant

Every new business needs finance when they are first starting up. You will need to buy equipment and your workplace will need to be set up as well as all of your marketing costs being sorted out but it doesn’t just stop here; when you are officially set up and your business starts making money you will need to cover all of your businesses bills and your staffs wages.

When it comes to finance needed to establish your business there are a number of options available to you. One of these options is grant finance. So what exactly is this grant finance? Grant finance is some of the money that is given to individuals or businesses for a specific project or purpose.

Grant finance however only covers part of the cost involved in your business project but the money that is given to you doesn’t need to be paid back. Grants are given to businesses to help with specific aspects of business development and they are available from a wide range of sources such as the Government, European Union and regional development agencies. These business grants are only given to businesses for a specific reason and there are a number of factors that may affect whether you are able to gain a grant such as your business activity or your specific business industry sector, some are also linked to certain geographical areas, which are in need of economic regeneration.

Business grants are notoriously hard to gain and there are only a certain amount that are available to businesses every year so the competition for these business grants is strong, which is why if you are hoping to gain one you need to clearly outline what the grant will be used for and how it will benefit your business as well as how it will benefit your local community. You will also need to clearly show that the specific project you want the money for hasn’t already started to take place and that you are able to put the rest of the money needed for your specific project to the grant money because, as mentioned earlier, a business grant only covers part of the money needed for a specific project.

A business grant will cover between 15% to 50% of the total costs involved in your business project so you will need to get hold of the rest of the money. If you gain a business grant when you don’t have the other half of the money available or you have already started the business project then you will be made to pay the grant back in full as you are breaking the terms of your business grant.

If you are hoping to make an application for a business grant then you need to make sure that you check what grants are available. Also there are a few factors that could affect you gaining a business grant such as the size of your business. Some grant providers will only give you access to a grant if your business is a small to medium business, ideally with less than 250 employees. As well as the size of your business you also have to think about your industry sector. This is because funding can often be limited and subject to restrictions in certain sectors, which are defined by the European Commission. Other restrictions include the location of your business and the purpose of your grant.

If you are going to apply for a business grant it is advised that you make your application well in advance of when your grant is needed as the applications can often take a while to process.

Helen is the web master of Angel Start-ups, experts in all aspects of Grant Finance.

Does your business need some extra cash? Have you thought about Grant Finance?

Many people don’t seem to realise the difference between what a grant is and what a loan is. Well as a brief explanation the main difference between the two is that a loan must be paid back with interest whereas a grant doesn’t have to be paid back, sounds simple enough and too good to be true; so how do you go about obtaining a grant?

The biggest price that you have to pay when it comes to gaining a grant is a lot of research and a lot of paperwork. It should also be noted that grants are only available for very specific and targeted endeavours and because of this your business proposal needs to fit perfectly within theses. The reason that the restrictions are so high and important when it comes to gaining a business grant is because these grants are limited.

Grants are available from a different variety of sources such as the Government, European Union and local authorities. These are just a few examples of the places that you are able to apply for a grant. These grants are a sum of money that is to an individual or business for a specific project or purpose. The most common awarding body for grants is the Government. These Government grants are usually always linked to a specific purpose or business activity and you will only be considered for a Government grant if this proposed business idea hasn’t already started to take place. Also it is important to remember that Government grants are more likely to be awarded if your business idea benefits the community, creates more jobs and generally helps to improve the industry sector and geographical area.

Getting a grant however is hard work and there is a lot of competition for the limited grants that are available. There is also a lot of information that you should be aware of when it comes to getting a grant such as they will only cover a portion of the total costs involved in your specific business idea, meaning you will have to put the rest of the money forward that is needed to complete the project. If you don’t have this money when you are applying for your grant you will be turned down for your business grant.

Another restriction placed on the application of a business grant is the fact that in order to apply for one your business needs to be a small or medium company. This is measured either by the turnover that your business makes or by the amount of employees that your business has. A business with fewer than 250 employees is considered to be a small or medium sized company.

Before making an application for a business grant it is important that you read through all of the restrictions that surround these grants to be totally sure that your business is eligible for a grant. The reason that this is so important is because if you are awarded a business grant and it is then found out that, for example you can’t put your half of the money towards your project you will have to immediately repay the grant. If you break any of the restrictions or conditions of a business grant you will be made to repay the grant.

A business grant could be the difference between whether you are able to advance or start up your business so for anyone hoping to gain one my main piece of advice to you is do your research; make sure that you fit the restrictions of a business grant and go for it.

Helen is the web master of Angel Start-ups, financial experts with the power to help you gain your Business Grant.