Emily Relph, Finance Writer for SME Loans, outlines six popular funding options that have proven affordable and effective in the plumbing and heating industry.

As Brexit negotiations continue later in to 2019 than originally expected, great uncertainty remains regarding the nation’s economic and political future. The increasing likelihood of a no deal Brexit has caused grave concerns for many business owners, particularly in relation to whether or not Brexit will impact the availability of affordable funding options.

A recent review concluded that the regulatory impact of Brexit on businesses would be reasonably limited. However, it is still important for business owners to actively educate themselves about the potential changes following Brexit.

It may indeed be time to consider adopting new strategies and funding options to ensure the longevity and success of your business in 2019. Here are a few options.

Angel investors

Angel investors are individuals or a group of individuals who make use of their personal disposable finance to invest in businesses in return for shares. Often, they not only invest their money, but also offer their business expertise and industry knowledge to work in partnership with you to make your company a real success.

With angel investors, there is no need for collateral, repayments, or interest. Rather, ‘angels’ are free to make their own investment decisions and can usually offer you investments of £10,000 to £750,000. So, if you’re looking to borrow a smaller amount of money for your plumbing enterprise, this option might not be for you.

Small business loans

As this type of funding is usually unsecured, it’s a really suitable option for any smaller businesses that have limited valuable assets. In other words, you don’t need to offer any of your personal or business assets (home, vehicle etc.) as collateral to be accepted for funding, so most businesses are able to qualify.

With a small business loan, you can also apply entirely online, which means there’s no need to attend any time consuming meetings with the bank and repayment plans can be tailored to specifically meet your business’ needs.

Usually, small business loans are repaid in easily manageable monthly instalments and everything is agreed upfront prior to the exchange of funding, so you’ll always know what you’re entering into.

Overall, their main appeal is that they offer a fast, accessible, and affordable alternative to applying for a loan through the bank – online providers of small business loans can provide funding ranging anywhere between £2,000 and £500,000, and you can receive the money within as little as 24 hours.


A more innovative way of securing funding is through crowdfunding, which works by using social platforms as a method of raising capital through the collective effort of individual investors.

This approach can be hit and miss in terms of finding individuals that are willing to invest in your plumbing business, however it does give you the leverage for greater exposure. Like every kind of funding, you need to be willing to give something back. This can be done through rewards-based crowdfunding or equity-based crowdfunding.

For the rewards, an individual contributes to your business in exchange for a reward, typically a form of the product or service your company offers. For equity-based funding, contributors receive shares of your business or some of the profits in the form of a dividend as a financial return of their investment.

Peer-to-peer lending

Similar to crowdfunding, peer-to-peer lending works on a marketplace platform, where investors or individuals with disposable income are able to lend their money to help other businesses. The investor receives an agreed upon percentage of interest and their money back when the loan is repaid.

Equity-based funding

Sourcing finance through equity-based funding requires you to give away shares in your business or a pre-agreed proportion of your total profits (in the form of a dividend) in return for the contributors’ investment. You can acquire these funds through angel investors, as discussed previously.

Revenue-based financing

Revenue-based financing, or RBF as it’s also known, sits somewhat between traditional business loans and equity financing. It is a form of business funding that is usually provided only to small businesses and start-ups in exchange for a share of future revenue. With RBF, business owners dictate:

  • The total amount of finance in exchange for revenue to be repaid over time
  • The percentage of revenue shared with the provider of financing
  • The payment frequency either monthly, weekly or daily.

There are plenty of options for funding and developing your business, so consider what options may be best for you and ensure that your company continues to thrive through uncertainty.