Micro-businesses within the East Midlands are thriving. Recent ONS figures reveal that, while the number of micro-businesses across England fell by 5,015 in 2017-2018, the number of micro-businesses based in the East Midlands increased by 1,230 in the same period. This isn't surprising, considering that the East Midlands is a thriving hub for business growth, especially for the construction, manufacturing and agriculture industries.
To make sure businesses in the East Midlands continue to thrive, here are some of the alternative business loans available to businesses within the region:
Business loans in the East Midlands
One of the quickest types of funding available is a small business loan – they generally require less paperwork and decisions tend to be made a lot quicker compared to business grant applications and other finance options. Below are a selection of finance providers that focus on lending to SMEs:
Fleximize – Fleximize provides flexible funding that allows SMEs to flourish and grow. You can borrow between £5,000 and £500,000 for lots of different purposes, including cash flow, buying stock or hiring premises. Limited companies and LLPs can apply for short-term business loans, and sole traders could be eligible if they're looking for a loan over £25,000.
Midlands Engine Investment Fund (MEIF) - The MEIF is a collaboration between the British Business Bank and 10 Local Enterprise Partnerships (LEPs) in the West, East and South East Midlands. They provide loans and business support to SMEs that contribute to regional economic development and job creation. Loan periods can go up to five years and loan amounts vary from between £25,000 to £1.5 million.
CWRT - Businesses operating primarily in Coventry and Warwickshire who have been unable to raise sufficient funding from their bank can apply for a loan of between £1,000 and £75,000. Interest rates go up to 18.75% per annum, and an additional arrangement fee of 5% of the loan amount will be added to the loan. Terms range from 6 months to 5 years.
First Enterprise – If your business is based in the East Midlands or South East Midlands, you could take advantage of business support, business advice and business loans up to £150,000. Startup Loans are also provided to those who have a viable business idea but no access to finance.
UK Steel Enterprise – Owned by Tata Steel, this organisation helps to regenerate communities impacted by changes in the UK’s steel industry. Loans from £25,000 for startup costs, working capital, equipment purchase, premises, management buy-outs / buy-ins and other purposes are available.
Grant for Enterprise – If your SME is in Newark & Sherwood, you can have access to up to £2,500 of funding to help your business. You must already be trading, and only business-to-business traders will be considered.
Invest to Grow – Delivered by the University of Derby, private-sector growing businesses can apply for grants and loans ranging from £15,000 to £250,000 across the East Midlands to innovate and create jobs.
Leicester City Investment Fund - This fund is aimed towards encouraging business growth and jobs within the Leicester area. As such, loans of up to £4 million are available to companies in the form of infrastructure provision, acquisition of land, redevelopment of or construction of commercial property and more. Eligible businesses must have a clear link to safeguarding and creating jobs within Leicester and demonstrate that there is a funding gap.
Sir Thomas White Loan Charity - This equal opportunities organisation provides loans for startups and young businesses. You can borrow up to £20,000, interest free for up to 9 years, but eligible businesses must be based in Leicester or Rutland and have liquid assets of less than £40,000.
You can find the latest list of Start Up Loans providers within the East Midlands here.
Apply for a flexible loan
At Fleximize, we understand how difficult it can be to access the funding needed for your business to grow and thrive. To discuss the lending options on offer for local startups and growing enterprises, call the team today on 020 7100 0110, or click on Apply Now to start the quick and easy application process.
If you want more information, check out our guide to alternative finance for a host of other funding options available to UK SMEs.