A Government incentive launched in 2012 to encourage entrepreneurship in the UK. This Start Up Loan scheme is a personal loan of between £500 - £25,000 available to anyone that is looking to start or grow a small business. With a fixed interest rate of 6% and repayment terms between 1 to 5 years, this is a suitable option for many businesses.

To qualify you will need a detailed business plan and cash-flow forecast. You’ll also need to be able to prove that you can afford the monthly repayments (should you need to) and to prove that you are eligible to work in the UK.

One of the most popular ways to attract start-up funding in the UK, with a range of platforms overing different models. Crowdfunding gives start-ups the opportunity to raise money and publicity, whilst also gauging interest in a product to develop as the business grows.

Ideal for product-based businesses. Consumers invest in your business by pre-ordering your products. This gives you the capital needed and rather than giving up shares, your investors are rewarded by being on of the first to receive your innovative new product.

One of the most popular ways to attract start-up funding in the UK, with a range of platforms overing different models. Crowdfunding gives start-ups the opportunity to raise money and publicity, whilst also gauging interest in a service to develop as the business grows.

Ideal for service-based businesses and/or businesses that need to raise larger amounts of money. Investors are given equity in your business which makes them more likely to invest more than a typical consumer would.

Large banks are typically risk-averse, especially when it comes to handing out loans. Many large banks don’t provide start-up funding to businesses that haven’t yet proved themselves. You would usually need a guarantor or 2 years of business accounts.

As a result peer-to-peer lenders were launched in the UK, designed to connect investors directly to new businesses that are looking for funding. Qualifying start-ups are given easy access to unsecured loans of up to £500,000.

Angel investors are wealthy individuals that invest in start-ups in their earliest stages. Most angel investors will have launched a successful business of their own. It is recommended to pitch your start-up to an angel-investment network, though you could also approach an investor one-on-one. Capital from angel investors is frequently used for research and development, to help the company formulate its product and service offering, to design a business strategy or identify its target market.

Face to face meetings are crucial to securing an angel investor.

A venture capitalist is an investor that funds start-ups with very high growth potential. This form of funding is quite rare and is usually only available for companies that are growing very quickly, or have already received at least one round of seed funding from an angel investor.

A venture capitalist will play a large role in the day to day running of the business, taking a role of an associate or a partner. Many start-ups aren’t comfortable with relinquishing control over their business and this kind of investment can consume large amounts of time and energy.

One of the most reliable forms of raising capital for your start-up business is to call upon your friends and family.

There are risks to this form of capital as money problems between family and friends can create disasters for your personal relationships. Always ensure that if your family or friends are willing to invest, that they can afford to lose the money, that they understand the risks involved, and that you have legal contracts drawn up to mitigate conflicts in the future.

There are many small business grants available, however many of them are tailored to businesses specialising in innovation across numerous fields, from technology to the arts. A full list of the grants available can be found here. You can also check with your local council as they may also be offering grants to small businesses in your area.

Government grants tend to be small amounts of money that are available for specific things and you will need to evidence that your business falls into the required category and that the money is needed for the intended purpose.