90% of all investment opportunities on crowdfunding platforms, such as Growthdeck, are in the Enterprise Investment Scheme (EIS) or the Seed Enterprise Investment Scheme (SEIS), both Government schemes that offer significant tax breaks to investors in exchange for funding SMEs. The success of the UKs crowdfunding industry has been driven by these schemes, and the high proportion of crowdfunding opportunities that are compliant with them also underlines the importance of such Government-backed schemes to the UK Start-Up economies.
To comply, businesses must have less than £15million in assets for EIS and just £200,000 for the SEIS scheme, focussing crowdfunding on the smallest segment of the SME market. These businesses find it the most difficult to access bank-lending but the crowdfunding industry offers a platform for investors to back SMEs with exciting opportunities that they truly believe in whilst benefiting from the tax breaks and enables SMEs to implement their growth plans, turning ambitions for success into a reality.
Helping SMEs to reach their full potential has always been the goal of summ.it and our services. Boosting the small, local business market is in the heart of what we do, we are well connected with many different sources of lending and have an excellent reputation with lenders. We are experts having gone through many renewals and new applications for finance with our clients. Today you need more than security in order to raise finance, lenders are looking for confidence in the management team and its financial processes and reporting. Having a good track record of financial management is essential and we will provide you with this. Crowdfunding can help your business where other methods of fundraising can’t and we can assist you in deciding if this is the right approach for you and your growth plans when conventional lending has barriers. Speak to our Finance team and find out how they can help you and your business succeed.