Government to offer £2,500 start-up loans for young entrepreneurs
The Government has launched a scheme to encourage start-up businesses through loans for young entrepreneurs.
The Forum of Private Business (FPB) has pledged support for the scheme, which will offer start-up loans of up to £2,500 to support credible business plans submitted by 18 to 24-year-olds only.
The scheme has been welcomed by the beauty industry, in which many young therapists aspire to setting up their own salon or spa business.
FPB senior policy advisor Phil McCabe said: “With bank lending still scarce this initiative is a viable alternative for entrepreneurs who may be having problems accessing finance from a high street lender.”
He added: “Of course the beauty of this scheme is that those firms that don't do well won't have to pay the loan back."
The Forum’s contribution to the scheme will be to offer successful applicants free access to its online Credit Control Guide and discounted membership as part of the project.
McCabe said that its guide to credit control is essential for all business and especially first-timers. He added: “With one in four businesses declared insolvent due to late payment of invoices, taking control of your debtors is something anybody new to business should be doing.
“Our latest research shows more than half of all small businesses feel late payment is now a serious problem."