Financial support for small firms – but where to start?
AS A small business owner, what keeps you awake at night? For many, balancing the books is top of the list. Healthy finances are crucial to allow you to both invest in your business whilst protecting it from what the future may bring.
Fortunately, there is a range of government support available to help your business to be secure and most importantly, grow.
One example of a small business which has received government financial support is Trunki. Their innovatively designed products (including their famous children’s suitcase) have enabled them to access a range of government products and services, helping them to take huge leaps as a business.
“Trunki has received government support in a number of ways.” explains Rob Law, founder of Trunki. “Firstly, we worked hard to re-shore our manufacturing to our plastics moulding factory in Plymouth, allowing us to benefit from The Patent Box scheme.”
The Patent Box enables companies to apply a lower rate of corporation tax to profits earned from patented inventions.
It is being phased in over a fouryear period and once the full benefit of the Patent Box is in effect (from April 2017) it will result in a ten per cent rate of corporation tax being applied to such returns.
“We have always applied for patents for all of our products to build up our IP portfolio, it’s one of the most valuable assets we have” said Law. “This scheme is brilliant, allowing us to re-invest more of our earnings back into the business. It motivated us to stay in the UK and not to offshore. It rewards inventive companies too, which can only be a good thing.
“Secondly, we received government support through R&D tax credits for the development of our BoostAPak children’s car seat and for the re-engineered version of our Trunki suitcases, which is now easier to manufacture in the UK and to recycle.”
There are many types of financial support available to businesses with ambitions to grow.
As well as the increasing variety of finance sources now available (such as crowdfunding, bank loans and peer-to-peer lending) there are many government schemes and incentives (on top of those Trunki accessed) devised to help small businesses secure the funding they need to succeed.
For example, your business may be eligible for financial support packages such as the Enterprise Investment Scheme, SMART grants or Social Investment Tax Relief. Or perhaps your business needs the support to secure initial funding to help turn your idea into a reality.
To learn about all of the finance options available to you and your business, and for more detail on how the government can support you financially, visit www.greatbusiness. gov.uk/finance