Wanting your business to grow? Consider giving grants a go!

How do you grow a business?

Many business owners default to approaching the bank for a loan or trying to win the favour of external investors.

While effective support for growth, these financial options do tend to come with a few strings attached that may not be ideal for all businesses.

To grow a business successfully, you need to know all of your financial options.

Grants are too often overlooked, so it is time to understand when and how a grant can grow a business.

What is a grant?

A grant is a non-repayable fund that is awarded by the Government or another institution.

Grants are more targeted forms of investment than loans, generally being given only when specific criteria are met and as a result of a successful grant bid.

The reason why loans and investments are the default financing options is due to a perception that grants are difficult to acquire.

While some can be competitive, if your business meets the criteria, then there is likely little downside to entering a bid for the grant.

As smaller businesses tend to face greater challenges, many grants are specifically aimed at SMEs.

Grant funding is available for research and development, innovation, energy efficiency, export growth, rural business, technology adoption and much more.

What grants are best for my business?

According to the Government database, there are currently over 100 grants available for businesses in the UK.

The list of grants available is continually updated, meaning that it is worth keeping a close eye on grants that may target your specific sector.

Depending on what you are hoping to achieve and what sector you operate in, there may be plenty of grants available or just a select few.

Some of the core benefits of grant funding to consider are the way grants can:

• Preserve the value of the business’s existing owners
• Strengthen your credibility and prove your project can meet set criteria
• Open doors to further funding, as lenders and investors often view grant-backed projects as lower risk
• Support specific sector activities that might be hard to fund, such as R&D

Are there any risks to using grants?

Grants are generally lower risk than other financial options.

Loans carry repayment terms, while external investment will likely see someone else take partial ownership of your business – neither of which applies to grants.

What must be considered is that grant applications need to be carefully tailored to meet specific criteria if you hope to be successful.

This may mean showing clear business plans along with a clear explanation of how the funding will be used.

It is also possible that a grant may not cover the full cost of a proposed project.

As such, you may need to contribute a portion of the project’s cost yourself while still showing the clear economic or social value of the work and meeting a specific eligibility criterion.

Grant funding can be an effective tool for facilitating growth, especially when used in conjunction with other funding sources.

Seeking expert support is the best way to determine the right approach for growing your business.

We can help you determine which grants are available to you and how to apply for them, as well as explore other financing options.

If you are ready to take the next step in growing your business, our team will be there to walk alongside you.

Grow your business with confidence by speaking to our team today.