It is a no brainer that for a person to start a small business, funding is required. Whether you want to start small, or big right away, a capital will be needed.
After you have funded your business, and have made your first sale, then, the cycle of selling and buying sellable items starts. After which, funding may be needed again when you want to expand the categories of your sellable items. When always advise to reinvest 100% of your profits back into the business in the early days so that you can fast track the growth of the business.
The good news is, apart from your business credit or debit card, there are other ways to fund your biz. And we are here to inform you of these other means.
1. Government & Other Grants
Available to businesses that need extra support or have been rejected for a loan
Usually awarded to businesses in a specific region or fulfilling a specific purpose
Access can be limited. Schemes will change as governments change
Include loans and grants
Small business success is vital to the British economy, so the government often provides grants and loans for brand new enterprises and business owners that need it. A loan will have to be repaid but could have favourably low interest rates or accessible terms. A grant doesn’t have to be repaid at all.
Accessing government grants and loans can be difficult because they’re designed to help the most in need. Your business will be assessed and means tested and there could be restrictions based on your location, size, and sector. Schemes will often be limited and may not be available on an ongoing basis.
To find current government grants and loan schemes, search the finance and support database.
2. Startup & New Businesses Loans
For brand new businesses
Government-backed finance available
Fewer options available from banks
New businesses often need a helping hand. Startup and new business loans are designed for brand new enterprises with a limited financial history. Startup loans are available from private loan companies and some mainstream traditional banks, including NatWest. Some entrepreneurs choose to take out a personal loan to support their new business idea, which means repayment is your personal responsibility instead of the business’.
3. Credit Cards
An accessible way to pay for business expenses
Available with most business bank accounts
A business credit card can be a simple and fast way to cover large and small business expenses online and in person. Most banks offer the option of a credit card with their business current account, but your business will need a credit check before it’s approved. Your card will have a monthly spending limit.
Credit cards can sometimes have a higher interest rate than loans and overdrafts, so it’s important to compare before you commit. If your business will be able to repay the balance in full each month, you won’t pay any interest at all.
One that is widely used in the Amazon circle is Capital On Tap! Here are the Pros:
It takes approx 4 minutes to register and be approved (balance limit based on business revenue)!
The credit limit far exceeds other credit cards (we got £25,000)
They don’t charge monthly interest fees as long as you pay off the balance in full per month
They offer 1% cashback for every £1 spent e.g. if you spend £100 in one month you’ll get £1 back off your credit card bill
It also offers reward points – use for flights (AVIOS), cabin upgrade, car rental and shopping discounts
You can opt for more than one card and could use an additional card for your review and purchaser (and set a budget limit to that card)
If you spend £5k on the card in your first 3 months you’ll receive 10,000 bonus points to redeem for either £100 cashback or 10,000 Avios points – I googled what these points can get you for free in flights = a Reward Saver Return Flight to Paris!
They do charge a £99 per annum fee BUT if you are purchasing stock on this card for your business and benefiting from the above Pros, this will cover the fee and some.
There’s also another sweet offer on right now that will give you £75 cashback. Learn more HERE.
4. Amazon Loans
Amazon Lending is a program in which Amazon offers short-term business loans to qualified sellers so that they can finance additional inventory to sell through the Amazon marketplace. Amazon loans are invitation-only and amounts range from £1,000 to £750,000. Amazon Lending does not check credit.
To receive an Amazon Lending short-term loan, you must receive an invitation from Amazon. Only registered sellers are eligible so you must have an active sellers account and a selling history of at least one year. Usually, you will be notified on your main dashboard when Amazon has a loan amount on offer to you. Loan offers are made to sellers that would most benefit from a loan to expand their businesses and repayments are automatically taken at intervals from your available funds.
Need More Help? Here Are Some Additional Resources
Get Coaching: Want our help growing your eCom business? Apply for our Arbitrage Experts Academy Programme Here.
Free Training: How to start, systemise and scale your online business. Register Here.
Book a FREE Strategy Call: Get 1-2-1 support from the OSC Team to devise a tailor made plan you can follow to achieve scale. Click Here.
Get Expert Virtual Assistants: Want our build your team of transformational VAs and free your time? Learn more here.