Funding is the process of supplying financial resources, usually in the form of money, effort, expertise or time, to finance a need, program, and project, usually by an organisation or company.
Sources of funding include credit, venture capital, donations, grants, savings, subsidies and taxes. Funding such as donations, subsidies, and grants that have no direct requirement for return of investment are described as "soft funding" or "crowdfunding".
Funds can be allocated for either short-term or long-term purposes, often from financiers a group of people dedicated to this task.
In economics funds are inserted into the market as capital by lenders and taken as loans by borrowers. There are two ways in which the capital can end up at the borrower. The lender can lend the capital to a financial intermediary against interest. These financial intermediaries then reinvest the money against a higher rate. The use of financial intermediaries to finance operations is called indirect finance. A lender can also go the financial markets to directly lend to a borrower. This method is called direct finance.
It is used for research, in fields of technology or social science. Research funding can split into commercial and non-commercial. Research and development departments of a corporation normally provide commercial research funding. Whereas, non-commercial research funding is obtained from charities, research councils, or government agencies. Companies that require such funding normally have to go through competitive selections. Only those that have the most potential would be chosen. Funding is vital in ensuring the sustainability of certain projects.
There is a new method of finance called "Crowd Funding" in which many members of the public and invest modest sums of money in to new businesses, start-ups or even buy bonds in large established corporations.
Below are some well-known companies that provide quick access to funding capital :-
- ZOPA has been around since 2005 and was one of the first P2P lenders. They are primarily for individuals and are based in London. Typical returns are roughly between 5% ~ 6% but are subject to market conditions.
- Funding Circle allows the public to supply quick funding to small businesses and get a decent return (Typically 7%). It was started in 2010.
- Accelerate Funding have been working in business finance for well over a decade, helping companies undertake R&D claims, discussing and planning Patent Box, assessing the possibilities of swifter access to government grants, funding and signposting young businesses to SEIS and then EIS. They also provide easy access to grants and money for innovation.
- KickStarter is the world's largest funding platform for creative projects. A home for film, music, art, theatre, games, comics, design, photography, and more. It provides quick access to funding or grants.
- Crowd Funder is primarily for individuals or small groups to raise money for worthwhile projects. They also provide a coaching service to help you manage your money. Crowdfunding is a new way to raise money for worthwhile projects. People are increasingly bypassing more traditional funding methods like bank loans or grants and turning instead to the surrounding people to support their venture. It's been around for centuries, but the internet makes it possible to reach a much wider audience.
- Just Giving Has many categories to donate to like Animals & Pets, Art & Culture, Education, International Aid, Disability, Local community, Sports and Health & Medical. Join 25 thousand charities, organisations and schools.
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