Despite knowing that funding possibilities are available but not being aware of the different types of funding your business could benefit from can be quite tedious. In this blog post, we aim to shed light on the funding types available and delve into the benefits and constraints of each.
The three main types of EU and Government funding are the following:
This type of grant is most probably the most attractive since in this case, the project funded would obtain part financing of a pre-defined percentage in cash. This kind of funding is ideal for those entities who either have the cash in hand or else can obtain financing through third parties to implement the project. In this case, one needs to first finance the project and after implementation, they would then receive a refund in cash. Some grants also offer the possibility to claim funds on reaching 50% of the expenditure of the project.
If funding is obtained through Tax Credits a percentage of the eligible expenditure is offset against the tax charges incurred by the entity. Such grants can put you in a position to obtain funding for an investment that would not be fundable through any other form of scheme. An example of such an opportunity is the 45% tax credit which can be claimed on increases in wage costs through the Micro Invest Scheme.
Loans and Guarantees
Another common form of funding are loans or loan guarantees. With loan schemes, one would benefit from lower interest rates than what would be the current standard rates, whereas for loan guarantees beneficiaries would be able to get loans from financial institutions at lower interest rates too. The benefit of such schemes makes it possible to acquire the financing required to implement a project even when other financial institutions might refuse to finance the project due to a lack of guarantees.
Now that we know what types of funding exist, where should we look next to know what projects are eligible for funding?