As well as the general finance options available, there are some special provisions for start-ups and opportunities that may be more appropriate for a new business.

Seed Enterprise Investment Scheme

The Seed Enterprise Investment Scheme (SEIS) has been set up by the government to help entrepreneurs get their businesses off the ground. It does this by offering tax reliefs to individual investors who buy new shares in a company and can generate up to £150,000 for a start-up.

Personal savings or investment from friends and family

Many entrepreneurs invest their own capital when starting a business  Your client may even find that their friends and family are willing to invest. The money can be given as a loan or equity finance, but it’s sensible to have a written agreement drawn up so they know what they will receive back and when.

Start-up loans

Start-up loans are loans aimed at young entrepreneurs who are living in England and looking for finance to start a business. Your client will need to create a business proposal and put it to a panel to pitch for a loan, with support from a delivery partner. 

The maximum amount has recently been increased to £25,000, but loans are typically less than £10,000 and currently average around £5,000.

Credit cards

Credit cards are often used for items such as travel, stationery, petrol, car repairs and can be a good way of smoothing out unexpected big bills. Just beware of high interest charges and your client’s credit rating will be affected if your debt gets out of control.

Grants

Grants tend to be sector specific, so your client’s trade body or association is a good place to make enquiries. The Local Enterprise Partnership should also be a first port of call for grants and training courses. 

You can find out what else your client may be able to apply for on the business finance area of gov.uk and they may also be entitled to support with moving from benefits to work/self-employment, if that applies.

Hire purchase, leasing or hiring

If your client is starting out and needs equipment there are many different hire, hire purchase and leasing options available. If property is required and your client is looking to buy, you can also look into commercial mortgages.