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Entrepreneurs Flock To Secure SEIS Start-Up Cash (Pars Herald)

by Hossein Soltani

The Seed Enterprise Investment Scheme (SEIS) has seen a huge surge in popularity as applications for funding approval soar by 75%.

The specialist investment scheme run by HM Revenue & Customs (HMRC) which links investors with entrepreneurs seeking cash for their fledgling businesses is a runaway success, according to financial experts.

In the 12013-14 tax year, HMRC was inundated with 2,582 applications for SEIS approval from new companies, according to a report from investment specialists Radius Equity.

That figure compared with 1,644 received in the previous tax year.

Now, financial experts are claiming that SEIS is raising millions of pounds for entrepreneurs who have had funding applications rejected by the banks.

Hit with investors

Not only has SEIS proved a massive hit with investors and small businesses, but the Enterprise Investment Scheme (EIS) has also seen a rise in applications. HMRC told Radius Equity that 2,718 businesses put in applications to raise funds through the scheme in 2013-14 – an increase of 16% over the previous year.

Radius Equity director Stephen Norton told specialist investment web site SEIS.co.uk: “The generous tax breaks offered by the government under these two investment schemes are attracting attention from huge numbers of entrepreneurs and investors.

“These schemes have definitely helped fill the hole left by the banks more or less leaving the sector.

“SEIS in particular offers a new source of funding that was not previously available to start-up businesses.”

 

Read the full article here on the Pars Herald website.