Where can I get money to fund my new product?
Product development can be a costly process which may deter individuals or businesses from committing to the process. However, funding and tax relief could be available whether you are an individual with an idea or an established business. The government and other bodies are very keen to promote innovation and product development and there are various funding opportunities out there to consider, as well as tax relief schemes for fledgling companies.
Hillside Product Design have a directory of business angels and companies who regularly invest in new businesses. We do not directly fund projects but we are happy to share any funding or investment opportunities we find with individuals and businesses looking to develop their product.
The majority of funding available at present is aimed at manufacturing new products and supporting new ventures and businesses so you will need to ensure you fit the criteria, perhaps by setting up a new business in order to be eligible. Some of these will vary depending upon where you are based as other regional funding or grants opportunities may be available.
The details and links below give an overview of the requirements to successfully obtain funding for your project. Please reference Hillside Product Design Limited if you contact any of these parties.
Research & Development Relief
Research & Development (R&D) Relief is a Corporation Tax relief that may reduce your company or organisation’s tax bill. R&D tax credits are the biggest single funding mechanism provided by Government for investment in business R&D.
The credit is made available in one of two ways: either as a tax deduction based on R&D spending or it may be possible for certain loss making small or medium sized companies (SMEs) to surrender their losses in return for a cash payment from HMRC.
Your company or organisation can only claim R&D Relief if it’s liable for Corporation Tax.
Get Set for Growth
Get Set for Growth. Think of Get Set for Growth as adding world-class resources to your company . Our finance and marketing experts offer successful applicants invaluable commercial insights and direction, drawn from first-hand experience, to save you money and time. Whether your business is micro or multimillion, we can help you create or strengthen your marketing strategies in order to generate more money from more customers and work with you to secure finance to support your goals.
We are as ambitious as you are and, thanks to a range of funding partners, we’re here to make as big an impact as we can – for you, your business and the wider community.
The Patent Box is one of the most generous tax incentives ever introduced in the corporate arena. It applies to innovative high tech companies and to companies that use patents in their trade, such as manufacturing companies.
To explain further, profits derived form petented technology are taxed at 10%. The main Corporation Tax rate is 19%. From April 2023, there is a planned increase to 25%. If you are a business who invests a lot of time, resource and effort in to NPD (New Product Development) this means that you have the potential to cut your tax rate by 15% by utilising Patent Box.
The reduced corporation tax rate will apply to companies including corporate partners and joint ventures that create or exploit patented inventions (and certain other medicinal or botanic innovations).
South West Manufacturing Advisory Service (SWMAS)
SWMAS design and deliver programmes of support that enable ambitious businesses to increase their productivity, improve operational efficiency, develop skills and reach their growth potential.
SWMAS work directly with manufacturers, on the shop floor delivering improvement programmes and at board level developing and refining strategy. We provide consultancy services, run public funded programmes, deal with complex funding arrangements and support businesses to leverage UK and European funding for growth and innovation.
British Design Fund
The British Design Fund is an early stage investment fund that specifically invests in, and provides support for early stage UK product design and manufacturing companies.
Crowdfunding has its origins in the concept of crowdsourcing which is the broader concept of an individual reaching a goal by receiving small contributions from many parties. Crowdfunding is the application of this concept to the collection of funds through small contributions from many parties in order to finance a particular project or venture.
Crowdfunding is the collection of finance from backers – the ‘crowd’ – to fund an initiative and usually occurs on Internet platforms and involve a variety of participants. They include the people or organisations that propose the ideas and/or projects to be funded, and the crowd of people who support the proposals. It is then supported by an organisation (the ‘platform’) which brings together the project initiator and the crowd.
Business Support Finder
The Business Support Finder is a really useful site for identifying any other possible sources of funding for your business.
Seed Enterprise Investment Scheme
The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies raise equity finance by offering tax reliefs to individual investors who purchase new shares in those companies. It complements the existing Enterprise Investment Scheme (EIS) which offers tax reliefs to investors in higher-risk small companies. SEIS is intended to recognise the particular difficulties which very early stage companies face in attracting investment, by offering tax relief at a higher rate.
Syndicate Room is an organisation that enables members of the public to invest in the same projects as professional “lead” investors, while providing everyone with the same economic terms and legal protections. Lead investors will conduct their own valuations and due diligence before investing, and members of the public will benefit from the reassurance that their money is being invested in a promising project.
Business Asset Disposal Relief (Entrepreneurs Relief)
Business Asset Disposal Relief (BADR) was known as Entrepreneurs' Relief before 6 April 2020. You may be able to pay less Capital Gains Tax when you sell (or 'dispose of') all or part of your business. BADR means you'll pay tax at 10% on all gains on qualifying assets.
Business Promotion Grant
Devon Delivers - Businesses across Devon are being invited to apply for a grant to help them reach new audiences. The Devon Delivers Business Promotion Grant aims to help Devon based companies promote their goods or services to national and international trade audiences. Grants of up to £1,000 are being offered through a competitive bidding process. The funding will support eligible businesses to cover direct exhibiting costs of attending trade shows or events.
Hillside Product Design have further financial advice partners to get you set-up from the outset and help you fund getting your product to market. Just contact us for the most up to date information.
Please reference Hillside Product Design Limited if you contact any of these parties.
Let’s Create Something Great Together
If you’ve got an idea you want to take to market, we will assist you through your journey. Even the most accomplished will require assistance which is where Hillside Product Design’s expertise is invaluable. We work closely with all our clients to ensure they have all the support they need throughout the product development process.