Logo

What is a small business?

In the UK a small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships.

There is a real need for small business to be able to access financing

  • Small businesses often face business financing problems due to their size.
  • Small businesses often can not get access to sufficient financing to afford operating expenses
  • Small businesses often lack working capital
  • Small business owners often do not have the funds to expand and meet demand

Options of for business financing in the UK

  • Self-financing by the owner through cash, loans or credit cards.
  • Loans from friends or relatives
  • Grants from private foundations
  • Personal Savings
  • Private share issue
  • Forming partnerships
  • Angel Investors
  • Banks
  • SME business financing
  • Venture capital business financing.

Every new business needs money when starting up. The majority of businesses will need to buy equipment, establish the workplace and meet marketing costs – all before the first sale is made. Then once you’re trading, you’ll need cash to pay the bills and keep the business going.