It is safe to say that the Spring Statement’s failure to introduce new tax reliefs or growth incentives has left many business owners disappointed.
Small and medium-sized enterprises (SMEs) in particular are already feeling the pressure of rising employment costs, higher interest rates, and ongoing economic uncertainty.
SMEs typically do not have access to the revenue and reinvestment powers of larger firms. They are also not likely to have the same backing from investors and other stakeholders, nor steady income from customers.
However, every enterprise needs funding to grow, meaning SMEs are in vital need of support from external funding sources.
The good news is that, despite the lack of fresh support, there are still many ways that SMEs can access the finance that they need – and of these, grant funding is one of the best.
Grants for SMEs
Grants are sources of funding that do not have to be repaid.
They can be provided by local authorities, Government departments, thinktanks, charities, and private companies.
Grants are typically designed to support businesses in specific sectors – usually high-growth sectors like health, technology and sustainable manufacturing.
Additionally, grants can be region specific, such as the Invest to Grow programme in the East Midlands that we highlighted last month.
There are many different types of grants available in many different sectors, so you must carefully consider your eligibility and understand which grants are right for your business.
Types of grants include:
- Innovation grants: Grants for research and development are usually for specific projects in sectors where growth is encouraged. They may require detailed reporting and adherence to strict guidelines.
- Local development grants: Provided by local authorities, these grants are typically aimed at projects that will stimulate local economic development. They may support business expansion, job creation, or regeneration projects.
- Green grants: For businesses with an environmental focus, there are various grants available to support sustainable development.
- Merchant cash advances (MCAs): For businesses with a steady stream of credit card payments, MCAs offer a way to receive cash upfront in exchange for a portion of future credit card sales.
It’s important to research eligibility and decide how you will use any funding you receive prior to your application.
This will provide your application with direction and substance that increases your chances of success – and help you to grow your business more effectively.
Make your business attractive to grant funders
If you are concerned about being approved for funding – especially if your business has been rejected in the past – there are ways to improve your appeal to grant Funders.
Remember: the driving motivation behind any financial support package is the Funder’s belief that you will succeed.
Therefore, steps to improve your appeal to Funders should focus on highlighting your business’s chance of success.
- Prepare a comprehensive business plan: Detailed and compelling business plans that articulates the company’s vision, mission, and operational strategy can help you to secure grant funding. The plan should provide deep insights into market research, competitor analysis, sales and marketing strategies, and clear financial projections. A strong business plan showcases your commitment to your business and its viability.
- Demonstrate financial discipline: Maintain organised and transparent financial records, including consistently updated balance sheets, profit and loss statements, cash flow analyses, and tax returns. A clean financial history, timely tax payments, and a record of profitability (or a clear path to it) highlight a company’s reliability and potential for success.
- Identify potential growth: Funders want to see that their grant money will do what it is supposed to do – facilitate growth. Businesses should clearly outline their growth trajectory, potential market share, and any future plans for mergers, acquisitions, or public listings.
Ultimately, you need to assess whether your business is truly ready to access finance. SMEs are typically in a period of uncertainty and growth, which may make them a riskier investment than larger, established companies.
How to prepare a robust grant application
It is important to read and re-read the grant guidelines to make sure that your business and/or specific project meet the Funder’s criteria. If in doubt, always contact the Funder to discuss your application.
You should also never assume that an Appraiser knows anything about your business.
Your grant application should go into detail about your enterprise, its track record, and financial standing. Providing statistics and supporting data from verifiable sources can strengthen your application.
Additionally, avoid using jargon and acronyms, since these can cause unnecessary confusion.
While it may seem obvious, make sure you answer all the questions comprehensively. Incomplete applications will not be considered.
Do not refer the Appraiser to an external source or attach appendices unless these are permitted or specifically requested in the funding guidelines.
Finally, make sure you meet the deadline! Most Funders have very strict rules around deadlines to ensure transparency and all applicants are treated fairly.
A 5pm deadline means 5pm – give yourself plenty of time to allow for unexpected events (such as technical issues).
Secure grant funding with Moore Thompson
In a time of economic uncertainty and rising costs, securing grant funding can be a game-changer for SMEs.
However, in order to succeed at accessing funding, SMEs need to look beyond simply achieving growth.
Business owners will need a robust plan in place to mitigate a range of economic challenges and demonstrate that they will innovate as well as expand.
At Moore Thompson, we have a strong track record of securing UK and EU grants for SMEs in a range of industries, including agriculture, engineering, manufacturing, education, charities, and local government.
We can assess and develop your business plans, liaise with funders on your behalf to ensure that your venture meets grant criteria, and complete grant applications that are fit for purpose and stand out from the crowd – giving you the best chance of success.
Need help securing grant funding for your business? Contact us today for expert advice and guidance.