In our last blog, we explored what the difference was between a grant and a loan and which one would be best for your SME or start-up business.
In a nut shell, a grant doesn’t need to be paid back and that’s why it can be really helpful for businesses in the early stages.
We see a lot of SMEs and entrepreneurs in the West Midlands looking for grants to help them start and run their business, and that’s why we want to delve a little further into them.
Here are the best types of grant available to your SME or start up.
A match-funded grant
A match-funded grant is essentially one which pays you part of your investment back. It’s the type of grant that Enterprise Action offers and here’s what it means in a bit more detail.
Let’s say you need to build a new website or purchase a laptop for your start-up or business (it can be anything), you can come to Enterprise Action and request a match-funded grant from us of £1,500 to help with the purchase.
For example, you may want to purchase a computer for £500. Once you’ve made the purchase, Enterprise Action will reimburse you half the cost of £250.
If you take out the £1,500 grant, you don’t have to use it in one transaction. You can make other purchases until you reach the £1,500 limit, which means you will have had to spend £3,000.
Think of it as a 50% cash back deal!
Here is why we think it’s the best type of grant for your business:
- You don’t have to pay it back (at least not to Enterprise Action)
- You spend your own money first and then we reimburse you, so it’s very much on your terms (as long as you spend the grant within the 6 months!)
- It’s brilliant in the start-up stage of the business when your funds are limited
- It’s perfect when you need to buy an item for your business but can’t quite afford it all
- If your company goes out of business, you won’t owe Enterprise Action anything
A direct grant
A direct grant is a chunk of money that you don’t have to give back. It sounds perfect; however, they are incredibly hard to secure and find!
That being said, if you can receive a large chunk of money without any need to pay it back, then it’s brilliant for your business.
As we mentioned right at the start of our article, there are always loans to consider if you can’t find a grant for your business, but why not speak with us instead?
Not only do we provide match-funded grants, but we also offer free workshops in specialist areas such as; marketing, branding and legal workshops.
Enterprise Action has so much to offer and all you have to do is get in touch here. All of our support is free, so don’t hesitate to contact us.