This is the latest presentation brought to you by Wisteria Formations. This is the latest in a series of SlideShares of information with regards to company formation, company registration, and all the considerations for your newly set up company. After setting up a company, raising finance to keep going or start growing is an important worry to many new company directors. Limited company has the benefit of shares and raising money through share capital, though this slideshow highlights the numerous options available to you. When you register a company, it is important to be aware of all important issues. Please view our other slideshows for more advise! Or, feel free to visit us at www.wisteriaformations.co.uk

1. GOVERNMENT GRANTS AND
FINANCING OPTIONS FOR START-UPS
What grants are available following company
registration?
What other options are there for financing?

2. This presentation looks to highlight some of the
financing options that are available to new business
following their company formation.
One of the most difficult tasks when starting a new
business is achieving funding to start, or grow your
ideas. There are a number of ways a company can
raise finance, though in a move to encourage start-
ups there are a number of government grants
available to help you.

3. WHAT ARE GOVERNMENT GRANTS?
A Government Grant is a payment from the
government to your business, given to complete a
project or behave in a certain way.
They are designed to encourage the growth of
business, and in particular areas that are beneficial
to the economy. For example, certain grants
encourage innovation.

4. SOME OF THE GRANTS AVAILABLE
(2011/12)...
Some of the financing schemes that are currently
available include...
 National Insurance tax breaks
 Research & Development grants/tax breaks
 Government guaranteed lending
 The Prince’s Trust loan

5. NATIONAL INSURANCE HOLIDAY
The government currently offer new businesses a
National Insurance (NI) “holiday”, which is
essentially a tax break for new employers.
You are able to claim up to £50,000 off your NI
costs, when employing up to ten employees
following company registration.
The NICs (National Insurance Contributions) of the
employer can be offset against other tax liabilities.
However, business in London and the South-East
are exempt from this particular scheme.

6. R&D ENCOURAGEMENT
There are a number of government schemes aimed at
encouraging Research & Development (R&D) for
businesses following company formation.
 R&D Grants are available for those planning to research
new products/services. These will pay some of the
costs, or match the investment from your newly set up
company.
 R&D Tax Credits provide tax relief on research and
development that brings advances in the industry. Tax
relief can be obtained by small-medium enterprises
(SMEs) and larger companies, under different
circumstances.

7. LOAN GUARANTEES
There are a number of different schemes that the
government use in order to guarantee lending and
short-term finance.
These schemes can help limited companies and
other types of business obtain important finance
when cash flow is a problem.
There are a number of government approved
lenders, and all applications to obtain a loan
guarantee should be made through these bodies.

8. THE PRINCE’S TRUST LOAN
This loan is aimed at unemployed persons between
the age of 18 and 30 years, encouraging them to
start their own business. It includes:
 A loan of £500-5000, with a choice over repayment
term.
 Help in writing a business plan.
 A 6-month repayment holiday.
 Free business banking and a fixed interest rate.
 Ongoing support.
This scheme is offered to start-ups by The Prince’s
Trust in association with Barclays.

9. OTHER TAX ADVANTAGES FOR NEW
BUSINESSES
After you register a company it may be important to
consider the tax position of your business. There
are a number of schemes designed to give a tax
advantage to new businesses:
 Discounted business rates if locating in certain
“enterprise zones”.
 “Capital allowances” claimed against expenditure,
for capital equipment purchased for the business.
 Tax relief on R&D, as previously discussed.

10. OTHER WAYS TO RAISE FUNDING
There is a chance your newly set up company won’t be
eligible for grants, in which case you’ll need to include
other methods of financing.
 Bank borrowing: e.g. overdraft, loan
 Non-bank borrowing: e.g. a loan from friends/
family, or commercial loan providers
 Business Angels: individuals that will invest in young
businesses for equity
 Equity finance: selling shares in your company to
raise capital – an advantage or company formation

11. W: http://www.wisteriaformations.co.uk
@: formations@wisteria.co.uk
T: +44 (0)844 893 0808
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