Learn about the different options available for you to grow your fashion brand
Business funding is an external financial option to encourage individuals to carry out their business idea or help grow a company in its early stages. All small businesses from different creative industries can benefit from this quick access to finances to help their business off the ground. Presenting a solid business plan makes it easier to be eligible to apply for funding from potential investors.
Small companies can especially benefit from this alternative to grow their fashion brand by being able to offer fully customed products developed from scratch. This will enable fashion businesses to pre-sell their clothing line by having sufficient production costs, choose their customers as well as closely communicate the availability of their products through their website and social media.
Your different fashion business funding options
There are different funding options available to raise funds for your fashion brand and we are here to walk you through every single one of them.
-Start-up loans:
A start-up loan is an unsecured personal loan that can help ensure the money you need to start your business company with low interest. The UK government offers an amount of £500 to £25 000 depending on the scale of money you need from the beginning to get your project up and running properly.
-Angel investors:
Start-up sponsors are called angel investors. These investors provide you with financial ressources so that they can invest directly in the ongoing development and economic strength of the start-up, but also provide support and advice on the creation and/or expansion of the company.
In return, angel investors usually demand shares in the company. In many cases, they also acquire co-decision rights on the strategic direction of the start-up. This puts a limit on their business freedom. The most important thing to consider here is how the cooperation with the shareholders is structured and whether they share your ideas about the company.
-Unsecured Business Loans:
This business loan is starting to become more popular among English entrepreneurs, as it does not require any assets as security (such as property or shares in the business). You could borrow up to £500 000 from the UK government with flexible repayment terms up to 5 years. It offers your business quick initial funding to carry out its fashion operations
-Research & development tax credits:
This tax incentive was first introduced by the UK government to encourage companies to invest in innovation by reducing the cost of corporate R&D. The fashion industry and technological advances go hand in hand. Companies who can come up with new or improved processes and product development such as the creation of new designs are eligible to claim this tax.
How Veritas Noble can help you ?
Deciding which type of business funding option works the best for your fashion company can be overwhelming especially if you don’t know what steps to take or whether your company is eligible for that type of funding. Here at Veritas Noble, we can help you ensure the funding that you need and the most beneficial for your company. Contact us to learn more.
