If you’re in the process of setting up a new businesses, chances are you’ll always be thinking about where that next bit of funding is coming from. In the current economic climate that can be all the more difficult, especially with bank lending requirements becoming all the more stringent. Start ups can struggle to get hold of loans and overdrafts without a detailed financial history. However, if you’ve already got a few sales on your books, then you could take advantage of invoice finance – this form of alternative funding doesn’t shy away from helping new businesses with their cash flow.
Invoice finance lenders don’t need the long track record of sales that the banks will need. As you start to sell more, you can also apply for more factoring services – invoice finance grows alongside your business,something that any flourishing start up will be able to benefit from.
Factoring is the most suitable invoice finance service for start ups. It unlocks up to 90% of the value of an invoice within 24 hours, helping you to make the most of your available funds. Many small businesses will be struggling with cash flow, but invoice factoring can help you to beat this particular challenge. The remaining 10% of your invoice value will be unlocked once your customer has paid, minus a small lending fee. The factoring lender will also take over all credit collection duties, freeing up your time to get on with growing your business. Start ups without a dedicated finance department and without a solid infrastructure for chasing up payments often appreciate this service.
If your start up is looking for ways to improve its small business finance, then invoice factoring could be worth a look.