All startups need a bit of help in the beginning stages. But with so many investors wanting to help grow tech startups, figuring out which type of lending is best for your company is tricky. With this in mind, here is a summary of each of the main types of funding best suited to supporting your tech startup:
If you have a very specific niche your business is trying to target, there could be an ideal grant out there just waiting for you. There are a range of different grants that tech startups can apply for to help get their business started. These include research and development grants which aid you when it comes to trailing new methods, knowledge transfer partnerships where you can work with graduates on specific projects and launchpads, available for businesses located in certain areas of the UK which aid businesses who’re wanting to turn ideas into commercial products.
Business lending is a popular option which offers startups much more flexibility than loans. It can help you to grow your start-up with ease, at Ebury you can even get started with no upfront fees to pay and they even pay your suppliers directly, so you don’t need to get involved.
For some tech businesses crowdfunding isn’t a suitable option as there can be very little you can offer lenders in return, but there are options if you’re creative. With crowdfunding, you need to be able to offer something in return for their investment. But if you develop a new app you could offer VIP access to features or early access to those wanting to invest.
Using peer-to-peer lending is a great option for start-up tech companies as it gives you the opportunity to borrow large sums of money easily and flexibly. You do have to pay interest back on the money which you borrow so it’s important to be sure you have the finances available to fund this.
The future of many tech businesses can be based on whether a new programme or app takes off which can make securing traditional types of lending more tricky, especially when it comes to things like bank loans. With all of these different types of lending options available to help fund your technology startup, it’s important to do your research to find out which option is best suited to your company.