The EIS Association (EISA) has produced a guide to the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS). “Grow your business with the Enterprise Investment Scheme” is designed as an introduction to EIS and SEIS for businesses that are considering seeking external funding.
The publication includes information about how EIS and SEIS funding can be used to help grow a business, why being eligible for EIS or SEIS funding could make a business more attractive to prospective investors, a checklist for assessing whether a business may be eligible for EIS or SEIS investment, guidance on suitability and how businesses can go about seeking funding.
“EIS and Seed EIS have been created by the government to help businesses to grow by providing them with funding from private investors. To date, more than 26,000 UK businesses have benefited from EIS and SEIS investment to the tune over £16bn,” explained EIS Association Director General Mark Brownridge. “This a great outcome but we believe a lack of awareness in the business community about EIS and SEIS is holding the schemes back from helping many more businesses. Many smaller businesses struggle with access to finance, in part because they believe a bank loan, or other borrowing, are their only options. This is clearly not the case, but not enough businesses know about EIS and SEIS, or, if they do, they perhaps misunderstand them and think they are not right for them.”
“‘Grow your business with the Enterprise Investment Scheme’ has been created to address this issue by providing businesses with a simple overview of how EIS and SEIS work, their benefits and information about how to get funding. We believe the publication of the guide is timely because new data published by HMRC shows that in 2015-16 there was a decline in the number of businesses that are new to EIS seeking funding for the first time. We do not want this to become a trend because it would mean businesses are missing out on an important and valuable source of capital. So, we hope this guide will raise awareness of EIS and SEIS, educate and inform about the schemes, and ultimately lead to many more businesses using them to provide start-up and scale-up capital.”
“Grow your business with the Enterprise Investment Scheme” has been sponsored by Calculus Capital, BDO, Edwin Coe and GrowthInvest. All are involved in EIS and SEIS. The guide will be distributed to Local Enterprise Partnerships, chambers of commerce, business associations and to business service providers such as accountants.
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