Running a small business can be difficult and making it a success with the mounting bills that come along with it can be challenging, but governments and councils have recognised this and are beginning to put loans and grants in place to help businesses thrive. There are many programs you can benefit from to help your business, one of the most notable being a PPP alternative loan. Below, we’ll look at some of the other types of financial help that businesses can take advantage of to prevent business cuts.
Benefits of business grants and loans
There are many government grants in place so that your business can benefit from an injection of cash when you need it most. These grants are used so that businesses can continue trading even in hard times. Businesses are essential for the economy and help towns and cities all over the world thrive, so it is within the government and local councils’ interest to help businesses of all sizes stay afloat. They are great options for businesses that want to grow and develop, as well as train staff, diversify or purchase new equipment. If you think a business grant could be beneficial to you, read on to find just a few of the options you could choose from.
1. Business Rates Relief
This is a scheme that is designed to relieve the burden that comes with tax when running a small business. If you’re running a business that is already finding it difficult to stay on top of your finances, the added pressure of paying your taxes can be the final straw. This type of relief can be applied if you operate from one property that has a rateable value of less than £15,000. This can be helpful for small businesses and as a part of the recovery from the pandemic, business rates have been cut to help industries like retail, leisure and hospitality sectors continue to run.
2. Plug-in Grant for Low Emission Vehicles
This grant is a great choice for businesses that must use vehicles to operate effectively. Having several cars or vans on the road can be costly, and eventually, it may end up with having to make cuts to your fleet of vehicles. Applying for this grant means that you can be given a discount on the purchase price of electric vans and is in place to promote the use of electric vehicles – for cleaner air. This can be beneficial to your business if you require vans to carry out your service and could mean that you save a sum of money to improve cash flow or add to other areas of the business.
3. New Enterprise Allowance
It can be difficult to develop a business, even if you have managed to get it off the ground. And it can be even harder when you don’t have personal or business funds to put towards its growth. A New Enterprise Allowance means you can benefit from the funds you need to grow your business, as and how you’d like, so you can make it a success and operate to your full capacity. If you or your partner receive universal credit, this scheme can be a great option as a way of obtaining funds to boost your business.
4. Kickstart Scheme
You’re going to need help as your business grows, but if you don’t have the funds to employ a worker, your business is not going to be able to expand, you might even have to cut areas of your business if you can’t afford to hire anyone to help! This is where the Kickstart scheme has helped lots of businesses – this grant allowed companies to hire an apprentice to work with them and receive a cash incentive of up to £3,000 to put back into the business. This allowed businesses to expand and prevented them from having to cut vital services within their company.
5. Employment Allowance
If your business is struggling, you might be considering laying off some of your staff if you cannot afford to pay the wages – wage bills can harm the cash flow within your company. As a way of reducing this burden on smaller businesses, the Employment Allowance relief scheme was designed so that businesses could reduce the national insurance payments they contribute for staff each month by as much as £3000. This can mean improved cash flow, and the ability to keep all your staff employed at all levels of the business.