Why grants are worth the effort
Finance & Funding
Key learnings
- Grants can provide more than a cash injection - they can also offer credibility and PR opportunities.
- A history of grant approval can also help attract further funding and boost your exit strategy.
- UMi has developed the UMi Loan Finder to make it quicker and easier for businesses to find the right finance.
Applying for grants can be complicated and lengthy, but the benefits to your business could be much more than just money, as UMi partner Swoop explains.
Every year, over £118bn is made available to UK businesses in grants across 1,900 schemes.
Grant awards can be a major turning point for a business, giving not just a welcome boost to the bank account but also a stamp of approval from the awarding body.
In the past, businesses may have been reluctant to apply for grants as they take a lot of work to research and the application process is time-consuming.
If, however, you have dismissed the idea of applying for a grant, it could be time to think again.
UMi has teamed up with Swoop to develop the UMi Loan Finder that quickly shows you exactly which grants you are qualified to apply for.
“A grant can be a game changer for a business,” says Andrea Reynolds, Founder and CEO at Swoop.
“We are in a similar position to our customers, because we’ve built the company up from a good idea and grown it using grant funding along the way. But we haven’t forgotten what it’s like to look at the market and feel overwhelmed by the options.”
Grants are an excellent opportunity for businesses to get a cash injection for a specific project.
Currently, there is a particular emphasis on green technology, but the landscape is constantly changing with national and regional grants available.
"Grants have a lot of advantages, not least the fact that you don’t need to pay them back. The other good thing about them is that they are a PR opportunity. Swoop has raised £7.5million from one awarding body and we’re proud to put that in our marketing. Getting a grant also shows that you are doing something worthwhile as a business and if your goal is to raise venture capital, getting a grant is a mark in your favour.”
Andrea Reynolds, Founder and CEO, SwoopFinding the grants that are available can be time consuming, so Swoop has put them all in one place with a criteria checklist so you can quickly see whether your business or project qualifies.
“The two things to remember about applying for grants is that first, regional grants are usually awarded on a first come first served basis. If you meet the eligibility criteria, don’t delay getting your application in.
"Second, grants usually require an element of matched funds. A business would be expected to finance the balance of a project, so you need to ensure you have the cashflow to make this feasible,” Andrea continues.
Swoop's CEO concludes that as well as the money, the value of getting a grant can spell good news for a company and its founder in other ways:
“Winning a grant is a sign of a company that is doing something really well. When it comes to securing further investment from an equity fund, or if the founder is considering their exit strategy, having a grant award in the company’s records can show that this is a business worth investing in.”
Andrea Reynolds, Founder and CEO, SwoopThe UMi Loan Finder will:
- Save you hours of searching
- Regularly refresh as new grants are announced
- Speed up the application process
If you are potentially eligible for a larger grant, the team at Swoop will be able to carry out a basic assessment with you and, where appropriate, introduce you to a grant writer, an approach proven to increase the chances of a successful application.
There are dozens of grants available for you to browse on the UMi Loan Finder right now. If you could quickly see how much money your business could apply for, wouldn’t you want to know?
Next steps...
- If you think your business may be eligible for grant funding, the best way to get started is to check out UMi's 'Get Grant Ready' service.
- Use the UMi Funding & Grants Finder to explore the grants currently available to you.
- Watch this video to learn how to structure your grant application.