Starting and running a business is a tough gig in itself, but throw in rocketing energy costs, rising inflation, the impact of COVID-19, skills shortages, and a lack of access to finance and you’re pretty justified in feeling that your business growth is being stunted by events outside of your control.
It’s a frustrating position to be in. But what if there were places you could turn to for financial support and business advice, that could help you weather the current economical storm? And even help your business prepare for any future curve balls? You’d be surprised by how much support is readily available, from initiatives to helplines, grants to software.
Here we round up a selection of options you can turn to for financial support and/or business advice, helping you to ease the squeeze of the current economic climate.
Business support
1. Business Finance and Support Finder at Gov.UK
The business finance and support finder at www.Gov.uk is an interactive tool that lets you search for government-backed support and finance. This resource is searchable by the type of support you’re looking for (e.g., grants, loans, advice), business stage, industry, number of employees and region. Make sure to also take a look around the wider Gov.uk website, as it provides a single point of access to all government services and information, including guidance on starting and running a business, employing people, funding and tax.
2. Local Growth Hubs
Access free support, advice and sources of finance through your local ‘Growth Hub’. Growth Hubs support local businesses facing the current cost-of-living challenges, with over 2.3 million businesses helped in the past year. This network of 38 Growth Hubs are local public / private sector partnerships led by Local Enterprise Partnerships (LEPs). They join up national and local business support, making it easier for you to find the support you need. Use this list to locate the Growth Hub that’s nearest to you, then simply select your chosen LEP and you’ll be directed straight to the Growth Hub’s homepage.
3. National Business Support Helpline
The Business Support Helpline offers advice and guidance to new and existing businesses. It has information on national and local schemes, grants and loans to help businesses start and grow.
T: 0800 998 1098 to speak to a business support advisor (9am-6pm Mon-Friday)
E: enquiries@businesssupporthelpline.org
4. Recovery Loan Scheme - Coronavirus support
While a range of financial support became available during the pandemic, the only COVID-19 financial support still available is the Recovery Loan Scheme (RLS). This Scheme supports access to finance for small and medium sized UK businesses, so they can grow and invest. It makes available up to £2 million per business group (up to £1 million for business groups in scope of the Northern Ireland Protocol), however the actual amount and terms offered are at the discretion of participating lenders. The government guarantees 70% of the finance to the lender and as the borrower, you are always 100% liable for the debt. Loans are available through a network of accredited lenders, which can be viewed on the British Business Bank’s website. You may be eligible for a loan through the RLS if your business is trading in the UK, has a turnover of £45 million or less. You will also need to show that your business is viable and is not in difficulty.
5. Energy Bill Relief Scheme (EBRS)
This will likely be on your radar already. The EBRS will provide energy bill relief for non-domestic customers in Great Britain. Discounts will be applied to energy usage initially between 1 October 2022 and 31 March 2023. (There is a similar scheme for Northern Ireland, providing a comparable level of support.)
The scheme is available to everyone on a non-domestic contract including:
- businesses
- voluntary sector organisations, such as charities
- public sector organisations such as schools, hospitals and care homes
who are:
- on existing fixed price contracts that were agreed on or after 1 December 2021
- signing new fixed price contracts
- on deemed / out of contract or variable tariffs
- on flexible purchase or similar contracts
6. Time to Pay - HMRC
If you can’t pay your tax bill in full, you can contact HMRC to discuss the support available to you. HMRC may suggest you pay what you owe in instalments, known as a Time to Pay arrangement.
Falling behind with your payments to HMRC, whether PAYE, VAT or Corporation Tax is never a good idea. However, should this happen, HMRC is generally open to a payment plan solution, which means tax ultimately gets paid, but without sacrificing the livelihood of your business. It’s important to ensure clear communication with HMRC when negotiating a time to pay. Provide good information, be consistent and transparent, and have someone at hand who knows how HMRC operates to advise you on the next step forward.
7. Federation of Small Businesses (FSB)
The FSB is a membership organisation, which provides small businesses with support, expertise and vital industry services. The FSB is designed to help SMEs through hard challenges and to help business owners achieve their goals. A vast amount of resources are available, from how to comply with business law, dealing with taxes and finances, finding the right insurance, managing employees, finding new customers, even a video interview with Professor Chris Whitty about the impact of COVID-19 on SMEs.
FSB members are provided with the tools and advice they need to run and protect their business in one place, backed up by a local support network of other passionate entrepreneurs. You can become an FSB member from £147 a year.
8. Business Debtline
If you’re self-employed and struggling with debts, don’t struggle alone. You can contact the free and impartial Business Debtline for advice and guidance on how to deal with your debts. Its website also provides debt advice fact sheets, as well as a cost of living hub, which helps you to find out if you can pay less for your cost of living and find out about any extra help that might be available. You can also speak directly with an advisor via its online chat feature.
Grants
There are a number of UK small business grants you can apply to for additional funding, which are available either within a specified local authority, defined as having fewer than 250 employees or with a turnover of less that £45,000 and a balance sheet totalling less than £39,000. A number of funding opportunities are also often based on a specific location or sector, or designed for a certain area of business such as job creation or making eco-friendly changes. Grants don’t require selling shares to investors, therefore allowing you to keep your company shares while funding your activities.
Here are a few examples: