by Shaheen Darr

Created on: September 20, 2010   Last Updated: April 08, 2011

Grants are awarded by government agencies or private organizations to businesses to improve the lives of their local communities or to individuals who are in financial need. Application forms require specific details about the purpose of the requirement and have to be approved by relevant authorities. Preparing a business plan, which takes into account all aspects of your business, will be the first requirement for any kind of lending. The next important step is researching the availability of grants and checking out the requirements from the grant agency website to ensure all requirements are fulfilled.    

Community Development Finance Institutions (CDFIs): These are lending institutions, part funded by the Government and through charitable trusts that offer financial support at affordable rates to small businesses, individuals and social enterprises. Regulated by the Financial Services Authority (FSA) they provide a much-needed support to those who need finance but cannot get it through normal channels like banks due to poor credit ratings. To benefit from networking opportunities and news on funding programmes, business support and financial advice is also provided in addition to loans. http://www.cdfa.org.uk/. 

Angel Investors:  Budding entrepreneurs who have lucrative ideas but lack funding can seek the help of angel investors. Not only can you get help financially without requiring security of any assets you own but they can provide the knowhow and marketing advice required to set up and run your own business. In return you have to give them a percentage of your business which is dependent on how risky the project and how much work is involved to make it successful. There are events held all around the UK which allow entrepreneurs to meet Angel investors to assess their changes of obtaining funding. In 2008, a concept called SpeedFunding which is very similar to speed dating, was started in 2008. Entrepreneurs are allowed three minutes to pitch their business idea to business Angels and ther is the opportunity to meet the Angles informally, afterwards. Events are held all around the UK but you have to register with the site online and submit a comprehensive business plan before you can attend. http://www.angelsden.co.uk/ 

Research and Development Grants (R&D): Grants of up to £250,000 are available for new products or processes involving technological advances and up to £100,000 for businesses conducting

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