Worried about the cost of new equipment? Don’t be. There are a variety of funding options in the UK to help you acquire the capital machinery you need to grow your business.
Government Assistance: A Helping Hand
- The Growth Guarantee Scheme: As the successor to the Recovery Loan Scheme, this initiative offers government-backed loans up to £2 million. Interest rates are capped, and the government provides a guarantee to the lender, reducing their risk. Check the British Business Bank website for the latest details.
- Grants: Don’t overlook the possibility of grants. These delightful injections of funds don’t need to be repaid. Eligibility varies depending on your industry, location, and the machinery’s purpose. Explore options on gov.uk and your local council’s website.
Private Financing: Exploring the Landscape
- Asset Finance: This is a popular avenue for machinery acquisition.
- Hire Purchase: You hire the machinery and have the option to buy it at the end of the term.
- Finance Lease: Similar to hire purchase, but without the option to buy.
- Operating Lease: A shorter-term arrangement where you essentially rent the equipment.
- Bank Loans: A classic option, but be prepared to shop around for the best rates and terms.
- Alternative Lenders: Think outside the traditional bank. Peer-to-peer platforms and specialist finance companies offer flexibility.
- Invoice Finance: If you have a hefty amount of unpaid invoices, this can unlock cash flow for your machinery purchase.
- Equity Finance: Be prepared to share a piece of the pie in exchange for funding.
- Venture Capital: Geared towards high-growth businesses.
- Angel Investors: Individuals with capital and a thirst for promising ventures.
- Private Equity: Typically for larger, more established companies.
Choosing Wisely: Factors to Consider
Before you sign on the dotted line, assess these key points:
- Cost: Can you afford to buy the machinery outright, or do you need financing?
- Cash flow: Ensure you can comfortably meet loan or lease repayments.
- Term: How long do you need the financing to last?
- Goals: How will this machinery contribute to your business objectives?
- Tax implications: Consult an expert to understand the tax implications of each option.
- Fine print: Read and understand the terms and conditions before committing.
Need More Guidance?
The British Business Bank website is a valuable resource for finding accredited lenders and exploring various finance options. Don’t hesitate to seek advice from accountants, financial advisors, and industry associations. The Packserve sales team is always available to answer any questions.
With careful research and planning, you’ll be well on your way to securing the machinery that will propel your business forward. Happy investing!