Different types of funding available are:
- Grants– Various issuing bodies (as many as 100) provide over 930 different types of grants and loans for different business projects. This type of funding is cheapest of all the different types of funding available. Grants are available for:
- Research and development projects in the name of GRAND i.e. grants for the research and development projects. GRAND is the department for innovation, universities and skills (DIUS) scheme, which provides grants for the research and development of technologically creative and new projects and processes. It is one of the types of funding available that aid new ventures and Small and Medium Enterprises (SMEs) to carry out the productive researches under different schemes. Under GRAND various types of funding available are provided for different research and development projects along with the reasonable contribution from the applicant as well.
Micro projects which are low cost, simple and involve less than 10 employees and continue for no longer than12 months are provided with the funding ofupto 20,000 pounds. These types of funding available are provided at 45%.
- These types of funding available can be utilized by research projects which last from 6-18 months with less than 50 employees are provided funding
upto 100,000 pounds at 60%. The aim of these types of researches is to determine the appropriateness and use ofthe new technology.
- Development projects which involve the creation of the product or process prototype, which actually is the remarkable advancement of the technology can benefit from these types of funding available. Projects which last from 6-36 months and involve less than 250 employees can get the funding of
upto 2, 50,000 pounds at 35%.
- Exceptional development projects which last from 6-36 months can get the funding of
upto 500,000 pounds
- Export grants- these types of funding available are for the projects initiated in the markets abroad. The investment and penetration in the new markets abroad is supported by funding of upto 20,000 pounds each at 50%.
- Training and education grants- these types of funding available are for families and individuals with low income. These types of funding available are mainly for those educational programmes which have good employment prospects. Under these types of funding available generally the grant of 200-300 pounds are provided.
- Environment grants- These types of funding available are for the projects which work towards saving the environment.
- BOC Foundation for the Environment was founded in 1990 to fund air and water quality projects. These types of funding available provide
upto 25-50% of the project cost and around 20,000-100,000 pounds value. - Clean-up Fund is provided for the harmful emission preventing
equipments and provides 75% of the cost. These types of funding available support the organizations which try to meet tough environmental regulations. - Community Chest Fund is available for the projects which are near the active SITA sites. These types of funding available provide funds of
upto 25,000 pounds. - High Impact Fund is available for bigger projects near the SITA sites. Under these types of funding
available the funds of 150,000 pounds and more are provided.
- BOC Foundation for the Environment was founded in 1990 to fund air and water quality projects. These types of funding available provide
- Assisted areas- these types of funding available are for the development of the under developed areas of UK. Grants of upto 10-35% of the capital expenditure are provided.
2. Loans– These types of funding available are provided against the suitable security deposit or
- Credit cards can provide upto 56 days of free credit.
- Overdrafts are the most common of the different types of funding available for short term finance. The limit of the overdraft is agreed in advance and is available for use within the stipulated time.
- Bank loans are the most popular types of funding available as the terms for the repayment of the loans are very flexible.
- Mortgages – these types of funding available can be used in conjunction with the overdrafts. The loans are available at flexible repayment terms.
- Small firms loan guarantee scheme- these types of funding available are difficult to avail. Upto100, 000 Pounds of loans are available for
upto 2 years of trading andupto 250,000 Pounds of loan is available for above 2 years trading.
- Export guarantee scheme- these types of funding available are provided for the updated and genuine export documents. This scheme is supported by government of UK.
- Mezzanine- these types of funding available are for the capital expansion of the better established businesses. The terms for providing the funds are between the loans and equity.
3. Equity– these types of funding available are not easy to avail
- Business angels- these are the big shots of the business world looking for the investment opportunities and can provide upto 2 million Pounds of funding. These types of funding available are usually between 25,000- 250,000 Pounds.
- Venture capital- these types of funding available are for achieving the exponential capital growth over the period of 3-5 years. These types of funding available are upto the degree of 1 million Pounds.
4.
5. Business relationship funding– these types of funding available can be used by:
- Joint Ventures where there needs to be the legal agreement on the deal with the other company.
- Partnerships where 2 companies work together with the available funding.
- Joint working relationships- these types of funding available can be used by the informal partnerships based on the resource sharing.
- Agencies, distributors, alliances, trade investors, associates, equity swop, franchises and licensing.
Different types of funding available can be chosen from on the basis of terms and conditions of funds and the requirements of the project.