Why Mix Business Loan Options with SEIS/EIS Equity?
Starting a new venture can feel like walking a tightrope. You need funds to hire, market and build—but you don’t want to dilute your ownership too soon. That’s where business loan options and SEIS/EIS equity come in:
- Loans let you keep control.
- SEIS/EIS equity brings in tax-efficient capital.
- Together, you get the cashflow you need and the credibility that comes with government-backed schemes.
Oriel IPO’s commission-free marketplace specialises in SEIS/EIS opportunities. By combining these with the right business loan options, you can minimise dilution, maximise tax relief and build a healthy runway.
1. Business Bank Loans
Traditional bank loans remain a go-to for many new businesses.
Pros:
– Flexible repayment terms (1 month to 30 years)
– Fixed interest rates
– Access to larger sums
Cons:
– Often secured against assets
– High charges on late payments
– Interest can be steep
Who it’s best for:
Startups with a proven turnover, solid plan and good credit score.
Tip: Use part of your bank loan for operational costs, then top up with SEIS/EIS equity via Oriel IPO to strengthen your balance sheet and unlock investor tax relief.
2. Personal Loans
When your company has little history, a personal loan might bridge the gap.
Pros:
– No collateral required
– Quick approval
– Freedom in spending
Cons:
– You’re personally liable
– Lower amounts available
– Higher interest rates
Who it’s best for:
Founders with excellent personal credit looking for quick cash.
Tip: Keep your business and personal finances separate. Once you secure a personal loan, bolster your growth phase by raising SEIS capital through Oriel IPO’s educational resources.
3. Government-Backed Start-Up Loans
The Start Up Loans Company offers up to £25,000 per person at a fixed 6% APR.
Pros:
– Government guarantee
– No assets needed
– 12 months of free mentoring
Cons:
– Strict eligibility
– Smaller sums per founder
– Personal credit checks
Who it’s best for:
Businesses under two years old seeking guidance as well as finance.
Tip: After you exhaust the government-backed loan, look to Oriel IPO to bring on SEIS investors and unlock further tax relief.
4. Equipment Financing
Buy the kit you need without tying up capital.
Pros:
– No collateral beyond the equipment
– Retain ownership of assets
– Quick access
Cons:
– Restricted to equipment purchases
– Higher rates than bank loans
– Responsible for maintenance
Who it’s best for:
Manufacturing, construction or any startup with costly machinery needs.
Tip: Combine equipment financing with an SEIS raise to preserve cashflow for other startup essentials.
5. Business Credit Cards
A handy line of credit for everyday expenses.
Pros:
– Instant access to cash
– Perks: cashback, 0% interest periods, insurance
– Good for short-term cashflow bumps
Cons:
– High interest beyond introductory offers
– Fees can stack up
– Not always available to brand-new businesses
Who it’s best for:
Startups with modest monthly outgoings and a good credit history.
Tip: Use credit cards sparingly. Then launch an EIS round on Oriel IPO to fund more strategic growth.
6. Friends and Family Loans
Leverage the trust of your inner circle.
Pros:
– Flexible or interest-free terms
– Less paperwork
– Strong personal backing
Cons:
– Risk to relationships
– Limited funds
– Potential interference
Who it’s best for:
Founders with supportive and financially capable networks.
Tip: Draft a clear agreement—and follow up with a formal SEIS fundraising campaign so those early supporters see professional governance.
7. Crowdfunding
Raise money from your community in exchange for rewards or equity.
Pros:
– Builds an early customer base
– Fast fundraising if you nail your pitch
– Alternatives for non-equity rewards
Cons:
– Time-intensive marketing
– No guaranteed success
– Cedes some control
Who it’s best for:
Consumer-facing products with strong storytelling appeal.
Tip: Pair a rewards-based campaign with a SEIS offer on Oriel IPO to attract sophisticated investors too.
8. Grants
Non-repayable funds from government or private bodies.
Pros:
– Free capital
– Credibility boost
– Mentorship often included
Cons:
– Highly competitive
– Complex application process
– Strict usage rules
Who it’s best for:
Businesses in specialised sectors or regional development zones.
Tip: Even after winning a grant, you’ll likely need ongoing funds. Top up with SEIS/EIS equity through Oriel IPO to sustain momentum.
9. Revenue-Based Financing (RBF)
You repay a fixed fee as a percentage of monthly revenue.
Pros:
– Payments flex with your income
– No interest, just a clear fee
– Fast funding (often in 24 hours)
Cons:
– Requires proven recurring revenue
– Caps on raised amounts
– Ongoing revenue share
Who it’s best for:
SaaS or eCommerce startups with predictable subscription or sales.
Uncapped vs Oriel IPO: A Side-by-Side
| Feature | Uncapped (RBF) | Oriel IPO (SEIS/EIS Equity) |
|---|---|---|
| Funding structure | Revenue share (no equity) | Equity stake with tax relief |
| Speed of funding | < 48 hours | 1–4 weeks due diligence |
| Cost | Fixed fee | Investor-set valuation, no platform fees |
| Dilution | None | Equity dilution, mitigated by tax relief |
| Repayment risk | High if revenue dips | Carry risk but long-term alignment |
| Tax benefits | None | Up to 50% income tax relief (SEIS) |
| Investor pool | Limited to revenue lenders | Angel investors, high-net-worth individuals |
| Educational support | Basic onboarding | Webinars, guides, community forums |
Uncapped’s model can suit you if you want debt without dilution—and you have steady sales. Their fixed fee and rapid turnaround shine. But there’s no tax relief, and you’re on the hook if revenue stumbles.
Oriel IPO’s platform connects you with commission-free SEIS/EIS investors. You get upfront tax incentives, educational resources and community support. Yes, you give up equity—but with up to 50% income tax relief and £150,000 annual loss relief, the net cost can be lower than many debt options.
How to Blend Loans with SEIS/EIS Equity
- Map your runway.
– Calculate how long each loan will last. - Prioritise low-cost debt.
– Use government-backed or equipment financing first. - Launch an SEIS round.
– List your opportunity on Oriel IPO’s curated marketplace. - Fill the gap with equity.
– Aim for 20–40% of your total raise via SEIS/EIS. - Manage dilution and tax relief.
– Adjust terms to balance ownership and investor incentives.
This mix keeps debt levels manageable while tapping into a pool of mission-driven investors on Oriel IPO. They value tax efficiency and long-term growth—exactly what your startup needs.
Getting Started with Oriel IPO
Oriel IPO offers:
- Commission-free funding for startups and investors
- A curated selection of SEIS and EIS opportunities
- Comprehensive educational resources, from beginner guides to advanced webinars
Their subscription-based access tiers unlock features like deal flow analytics and direct investor matchmaking. It’s the simplest way to combine your chosen business loan options with tax-efficient equity.
Ready to optimise your funding mix?
Start your journey with Oriel IPO today »
This post has explored nine key business loan options for UK startups and shown how combining them with SEIS/EIS equity via Oriel IPO can create a balanced, cost-effective funding strategy.
