Showing posts with label funding. Show all posts
Showing posts with label funding. Show all posts

Thursday, April 19, 2012

EIS and SEIS: a comparison

A number of changes were introduced in the new budget. In particular with respect to private equity investment tax reliefs. Now is the time to invest in startups, with two options both very generous when it comes to providing tax relief both for income tax but also for capital gains tax (and especially for high rate tax payers who are the natural target for those schemes).

Enterprise Investment Scheme (EIS)

Here is a summary of the changes some subject to EU State aid approval being granted:
  • The maximum annual amount that an individual can invest under the EIS will be doubled to £1m for 2012/13 onwards. There will no longer be any minimum investment; it was previously £500 in any one company.

Thursday, March 1, 2012

Innovative ways to fund your business

The lasting economic downturn has made it more difficult for small businesses to find the cash required to grow their business. Banks constrained by shrinking profits and increasingly stringent capital requirements have shun from lending to SMEs. And lending targets or the arrival of new entrants on the market will hardly change that.

While the banks have continued to lend through overdrafts and credit cards at extortionate rates, there are other options now available for the creative small business...
  • The Enterprise Finance Guarantee (EFG) -- it is a loan guarantee scheme intended to facilitate additional bank lending to viable SMEs with insufficient or no security with which to secure a normal commercial loan. There is an additional cost of 2% per annum but it can prove a great option when the business has no assets to secure a loan against. Just ask your bank about their EFG options.