e-Factor

Test Trading

Are you currently unemployed but dream of testing the waters with your business idea or turning your hobby in to cash? Then Test Trading just might be for you…

What is Test Trading?

You may have a brilliant idea and want to become self-employed or start a business but getting that first foot on the enterprise ladder seems out of reach. Test Trading is an initiative run by e-factor and the Department for Work and Pensions that allows individuals to start their own business whilst still in receipt of their benefit entitlement.

How does it work?

Supporting you over the first 26 weeks of your new venture, through Test Trading, you can focus on starting and running your business with the security of still receiving your benefit entitlements. Whilst you cannot draw earnings from the business whilst still claiming benefits, any profits made are retained in the business. However, if you do wish to stop trading at any point for any reason, your benefits will remain intact.

What support will I receive?

E-factor will provide you support from a Business Advisor to explore your business idea, ensure you are aware of what self-employment entails and ultimately build a business plan. Once you begin to test trade, we will arrange weekly review meetings with you and your advisor to make sure you make a smooth transition.

What happens after 6 months?

Whilst on the Test Trading scheme, your finances are jointly managed with e-factor to ensure stability of your new venture. Having reached the end of the 6 months, if you decide you wish to continue with your business you will come off benefits and start to trade independently. At the end of the scheme, you can reap the rewards, manage your profits and have full control of your business account. Nevertheless, you are still eligible to receive advice and guidance from e-factor at any point thereafter ensuring your business continues to have a bright future.

Click here to see who we have helped on our Test Trading scheme.