Raising finance

Raising finance for businesses following the credit crunch and the recession is challenging to say the least. If you are thinking of expanding your business, or starting a new one, you will need to raise finance.

Are you looking to start a business, or in need of capital to expand? We discuss here a number of options other than bank funding.

Your company pays corporation tax on its profits, but you are only taxed personally on what you draw out of the company as a salary, bonus, or by other means. The dividends you receive from your company are effectively tax-free in your hands, if your total income for the tax year is less than about £37,000.

The government offers a number of business loans and grants, as do Regional Development Agencies and local authorities.