Choose the right finance when starting up

Every new business needs money when starting up. For the majority of businesses, equipment will need to be bought, the workplace established and marketing costs met - 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.

There is a range of financing options. Choosing the right ones for your needs is essential. You can use your own money, borrow from banks, family and friends or attract outside investors. Grants and government support may also be available.Most businesses use a combination of these alternatives, tailored to their specific needs and circumstances.


You might qualify for a grant - for example, if you are setting up a business in a deprived area. See the page in this guide on grants and government support. This guide looks at how to work out how much money you need, the best financing options for your business and their advantages and disadvantages.


If your business is setting up in a deprived area, or in a sector that is not normally catered for by mainstream lenders, you might be able to attract finance from a community development finance institution. Alternatively you might be able to attract support from other businesses in your peer group. See the page in this guide on other sources of finance