Starting a Business With Invoice Finance

In any economic climate, starting a business can be an exciting venture with many challenges and obstacles.

With any new venture, the many legal considerations in respect of trading, hiring staff and the countless statutory obligations even the most experience entrepreneur can be overwhelmed. Yet, none of these are as big a killer to new businesses, as late payments, poor cash flow and lack of funding.

Never has there been such a difficult time to inject bank lending into a new business, and over the last 2 years traditional finance routes have become financial cul-de-sacs as the banks want to see often unrealistic levels of security, with large Personal Guarantees and at the same time, charging interest rates bordering scandalous. Furthermore, Angel Investors and Venture Capitalists are not as abundant as they were before the recession and as a result of the stakes being raised, many are demanding too much control.

Fret not as Factoring Finance could help you to raise the money you need quickly and without the strings attached to current bank lending facilities.

Factoring or Invoice Discounting can provide immediate funding against any invoices you raise and although business start-ups are all but automatically excluded from bank credit scoring, the main criterion of Invoice Finance is that your business is producing customer invoices. So, if your business is active, it isn’t as crucial to invoice finance providers that you are in your first year of trading.

Factoring can also take away the headache of having to micromanage your credit control when you really need to be focusing on building the business, not chasing payments.

What’s more, invoice finance facilities grow as your business grows without the need to renegotiate terms and when used in conjunction with Bad Debt Protection you can develop your business and customer pipeline, confident that your cashflow won’t make you stumble further down the line.

If you want to see how invoice finance could play its part in getting your business off the ground get in touch and we will use our independent broker network to find the best facility that is right for you.