The key difference between a grant and a loan is that a grant is non-repayable whilst a loan is essentially borrowing money which you must pay eventually back.
The key benefit of a loan is that it is accessible and flexible but can be difficult to obtain with a lengthy application process. Plus, a loan must be repaid during the specified loan term (putting pressure on finances) and interest rates can fluctuate.
That’s why we recommend finding a business grant if you can!
A great example is funding through Enterprise Action, available to SMEs and aspiring entrepreneurs based in the Black Country, Shropshire, and Herefordshire.
So, what grant options can Enterprise Action offer businesses?
With the Enterprise Action grant, there are two grant options; £1,500 or £18,000.
The financial sum will be match-funded, which means we can reimburse half the cost of your purchases. For example, the beneficiary may want to purchase a business computer for £500. Once the beneficiary has purchased the computer, Enterprise Action can reimburse them half the cost of £250.
If a business needed a different amount a loan might be better, although most start-ups find that £1,500 is plenty at the beginning of their business. All financial assistance subject to eligibility.
Here are our top reasons why you should get funding from Enterprise Action instead of taking out a business loan;
- With the Enterprise Action grant, you don’t have to pay it back
- Enterprise Action don’t ask our beneficiaries for repayments as they spend their own money first and then we reimburse them, so it’s very much on their terms, as long as they spend the grant within the 6 months
- If your company goes out of business you won’t owe the project anything or need to make any repayments, whereas with a loan you would still need to pay it back
Don’t just take our word for it. Here’s what some of our previous beneficiaries have said about our business grants and services;
Sasha Gray – Your Event Paradise
“I had a business idea but lacked the funds to get it going. Enterprise Action provided me with a business consultant; workshops and match funding that kicked started my events business within 6 months. The process was simple and hassle-free. I would highly recommend Enterprise Action to anyone that would like to turn their business idea into reality and avoid high-interest rate loans from the banks.”
Lynsey Harris – Lynsey Luu
“I used the grant money to help towards buying equipment as that was more beneficial to my business than, say, a fancy new website. Don’t just buy things for the sake of it, do your research & think of what could help your business now but also in the future.”
Matt Weston – Stone’s Throw Media
“Enterprise Action supported us with expenditure on new equipment, workshops and consultancy. This has allowed us to upgrade some of our kit to help future-proof the business. The money saved has gone back into the business to recruit new staff.”
Interested in finding more about the Enterprise Action project?
Available to SMEs and aspiring entrepreneurs based in the Black Country, Shropshire, Telford and Herefordshire, the Enterprise Action project is part-funded by the European Regional Development Fund.
Use our free eligibility checker to find out if you could benefit from our match-funded grants.