Small Business Funding Under the New Government

Changes to the UK economy are under way, many have been left wondering about small business funding under the new government. Sir Keir Starmer has tasked growth as one of National Renewal. Within his victory speech to the nation, he stated “Our task is nothing less than renewing the ideas that hold this country together. National renewal. Whoever you are, wherever you started in life, if you work hard, if you play by the rules, this country should give you a fair chance to get on. It should always respect your contribution and we have to restore that. The fight for trust is the battle that defines our age.” King Charles the III delivered the Kings Speech On the 17^th of July, in doing so the new parliament opened and commenced its first session. Within the speech a total of 40 bills were addressed, we will take a closer look at those who apply to small businesses, and the benefits they will bring to the economy.  

What’s to come for small businesses

Small businesses have faced a multitude of setbacks over the past 5 years. When covid struck the UK, many businesses did not come out the other side. Interest rates increased, product production and delivery became more expensive, energy prices soared, and the cost of living hit the UK public – with these issues combined (and more), the UK economy suffered, therefore we saw businesses across the nation closing their doors. Within Labours manifesto and addressed during the King’s Speech are bills targeted to improve growth and aid small business in recovering.

• The Great British Bill. Labour have committed to ensuring small business energy bills do not reach crisis levels again. The Great British Energy company will be a public entity with focus on lowering costs, all whilst pushing investment in renewable energy.
• Planning Infrastructure Bill. This bill will aim to accelerate house building and infrastructure by reducing rate tape. Giving hope to the construction sector who have suffered a slowdown in recent years.
• Skills England Bill. In previous blog we have discussed skilled workers shortages across sectors such as manufacturing, haulage, and construction. By bringing together business, unions, providers (and other organisations), this bill aims to ensure England has the highly trained workforce that it needs.
• English Devolution Bill. “Moving power out of Westminster and back to those who know their areas best”. This bill focuses on giving local leaders more decision-making powers, which in turn will make it easier for local businesses to grow and thrive in their community.
• Budget Responsibility Bill. “Any government making significant and permanent tax and spending changes will be subject to an independent assessment by the Office for Budget Responsibility (OBR).” This bill will play a key role in aiding and improving economic stability in the UK by creating a Fiscal Lock.

 

Actions small business can take now

All the measures set out above are paving the way for growth and stability within the UK economy. However, until these actions are firmly in place – what can small businesses do to increase working capital? There are options for small business funding under the new government, such as:

Grants. The government, and some local councils offer grants to businesses under certain terms and conditions. Depending on the businesses size, longevity, and turnover, grants can be a supportive lifeline for business growth.

Direct Grants: A fixed amount of money to cover essential startup costs like equipment, hiring employees, or training programs. This can be a major boost for new businesses to get off the ground.

In-kind Grants: Instead of a lump sum, the business receives resources or services to help you grow. This could include equipment, software, or even consulting from experts. Ideal if you need specific tools or expertise but can’t afford them yet.

Voucher Scheme: These grants provide vouchers or discounts you can use to purchase specific products or services that support your business growth. Sometimes, these vouchers are tied to government initiatives, like the Gigabit Broadband Voucher Scheme.

Start-up loan. Small (and any sized) businesses can apply for government back start up loan, with a value between £500 to £25,000. However, as this is an unsecured personal loan, the applier will need to pass a credit check.

Alternative Funding Options

Small Business Funding Under the New Government does not have to come in the form of a grant, nor a loan. Invoice Finance is a small business funding option which allows the business to steady out cash flow and improve working capital.

The business sells its upcoming invoices to an invoice finance provider, in turn, the business receives a prepayment of 80% of the invoice value. Typically, the business receives this money within 24 to 48 hours of notification of sale.

Invoice finance takes a holistic approach to business funding, as providers will review the businesses entire financial landscape, not just their credit rating. They will include the quality of the business debtors in their decision making, this enables business of all sizes and lifespan to apply with a higher success rate.

Partnership Invoice Finance’s Ethical Funding

At Partnership Invoice Finance we pride ourselves on being humancentric, meaning we focus on our clients’ needs. Have you left us a voicemail? We will return your call. Sent in an email? You will get a response. Would you like to speak with decision makers? Their contact details are readily available. Our charges are presented to you upfront. We have complete transparency in our fee structure. By choice we are proud to be full members of UK Finance and always rigidly adhere to their code of conduct. Providing our clients with extra peace of mind. (H2) Because we care We care about your business’s financial goals, and the ongoing struggles businesses across the UK are presented with. Through our invoice finance facilities your business can overcome peaks and troughs in the market. We welcome small businesses, start-ups, and established enterprises to contact us. If you’re looking for:

• Steady cash flow.
• Positive working capital.
• Small business funding.
• Alternative funding.
• A team of professional financial experts.

Look no further, than Partnership Invoice Finance.