Although a very popular programme, the BBC’s “Dragons Den” is actually quite a unique format. How many business people do you know, are willing to stick their necks, reputation and money on the line to help small independent businesses?
You know when someone is going to get the money because they have done their research, they have fully prepared and they have already gone out into the marketplace to tout their ideas and products.
For those who haven’t managed to get on the programme but need some funding to get their business ideas and products off the ground, where do you start?
The team at Select Factoring came across an interesting website named Kickstarter.com
This great platform enables people to put their ideas up for other people to follow and fund if they wish. They fund by having shares in the actual product so if it does take of and sell globally, people get a return on their investments.
If you are one of those lucky people who have orders for your products but no way of having them produced, you may have an invoice for that particular client. Rather than trying to have the product produced and being paid afterwards, you can swap this method around and take the capital from the invoice so you have the money upfront, enabling you to purchase the materials needed to produce the order.
You can do this by using Factoring an asset based finance solution.
It brings payment forward using the capital tied up in invoices. Using a factoring lender, allows you to have up to 90% of the value of your invoices within around 24 hours.
The factoring lender will then chase the remaining payment, whilst you use your new finances to get on with your business.
Finally you will receive the rest of the money minus a small fee, so if you need funding you can avoid the Dragon’s Den, with the aid of factoring.