The UK government do have a scheme in place to provide startup funding. Setting up a new business can be daunting, especially when the founders are unsure where they are going to receive their funding from.
There are schemes in place allowing startups to apply for funding from the government to help during the early stages of their development and allowing them to make progression to ensure further funding from additional investors.
There are also alternative means of finding startup funding if the company decides that the government scheme is not the best fit for them.
How To Check Eligibility
In order to be eligible for a government startup loan, a company must have a founder over the age of 18, so they are legally considered an adult in the UK. They must also be a UK resident and be in the process of setting up their company, or have set it up during the last 24 months. This is to ensure that the companies receiving the funding are still considered startups as they have not been established long.
Founders will also be required to declare that they are unable to secure alternative means of funding and have a business based in the UK. They must also submit documentation demonstrating that they have a right to work in the UK.
There are also terms and conditions affiliated with the loan, and startups must ensure that they can afford to make the repayments on any money borrowed from the government. Failure to do so can mean missing loan repayments and having to take out alternative debts to finance them.
How Do Startups Apply For Funding?
Startups can apply for funding for their company through the government website. There will be a portal allowing them to create an account where they can input all the necessary documentation to be assessed.
Companies will have to begin the process by completing an eligibility check to ensure that all of the necessary precautions are in place before the government progresses with the application. At this stage they will be able to create the account in order to submit any additional documentation required.
What Information Is Required Initially?
During the application process, startups applying for funding from the government will be asked to provide a variety of information about their company. This will include details surrounding the financial situation alongside the amount of money they are seeking and how they plan to spend it.
A personal credit check will also be undertaken by the government to assess eligibility to receive the funding. After this has taken place and the government have ensured that all information provided is accurate, startups will be required to submit additional documents.
These will include a business plan, cash flow forecast and personal survival budget. At this stage, the government will decide if the company has passed or failed the credit check.
What Happens After The Credit Check?
After the credit check has taken place and been approved, the startup will be assigned to a Delivery Partner. There will also be a business advisor in place to assist the startup with anything they need during the early stages.
There will be a window of 90 days in which the startup needs to submit a completed application.
The business advisor assigned to the startup will then be required to review the business planning documents. They will help to assess the strength of the business and how affordable the loan will be. After the application is complete and the loan has been approved, there will be support available for the next 12 months.