Getting a new business startup loan

Getting a new business startup loan

Cash flow can be very difficult for new or start-up businesses. In a start-up you are pulled in lots of different directions as you try and develop your business whilst also making sure your bills get paid.

When starting out you may need some extra money for new equipment, premises, product development or marketing. Or it may simply be that you just need a little extra cash to bridge that gap between the payments you have to make and getting paid by your customers.

Getting a new business startup loan doesn’t just have to be for investing in large items but can also be for providing the very important working capital you need to keep your business afloat and keep growing.

Flexible loans

Business loans for start-ups need to be:

  • Quick and easy to arrange
  • Flexible, so you can borrow what you want, when you want it
  • Controllable, so you are in control rather than your loan controlling you
  • Security free, so you don’t need to secure your loan against your assets

One of the most flexible forms of business finance which is gaining popularity in the business world is Invoice Finance, which consists, or factoring and discounting.

The benefits of Invoice Finance

Invoice factoring, unlocks the money that is locked in your sales ledger, and gives you immediate access to the funds that you have already earned.

The benefits of invoice finance include:

  • You get paid up to 95% of your sales invoices as soon as you raise the invoices
  • You spend less time worrying about your cash flow
  • You spend less time and money on credit control as the lender manages this for you
  • The service can be kept confidential

How does factoring work?

  • You issue your customers their invoices for the goods and services they require
  • The factoring company then pays you up to 95% of the value of the invoice within 24 hours of you raising the invoice
  • The factoring company then collects the outstanding amount from your customers, and when the invoice is paid your loan is paid off.

Factoring means that you can borrow up to 95% of the amount of the invoice and you still remain in complete control of the process and loan.

Factoring also gives you the added benefit of the lender taking over your credit control, therefore saving you time and money.

A new business start-up loan is crucial because it provides you with essential working capital you need to really grow and develop your business.

For further information regarding business loans please contact our advice team on 0800 597 4757 or apply online using the form opposite.