It’s the new year, we have a fresh approach to life with resolutions and goal, but do you have all of your finances in order, do you know about the support available to you?
Many companies don’t realise there are a range of alternative funding solutions, so ideas of bank loans and using your own savings to invest into a company can be cleared from your mind, because there is a range of funding solutions that is quick, simple and cost-effective.
You may have heard about factoring and invoice discounting but not actually realise what they are and how they work.
There are a few top Factoring Funders available in the UK. The process is basically taking the capital tied up in the invoices you will send to clients.
Factoring lenders will take on these invoices and give you up to 85% of the capital. You could have this in your account within 24 hours!
There are some more options, you can opt for the Factoring lender to take control and be your Credit control, contacting clients and chasing payment, you could do this yourself if you want to know exactly where you are with your finances and payments.
You can offer all of your invoices to the factoring lender or you can select a few to redeem the capital. This is a very flexible solution and is incredible quick, unlike having to wait for a bank to OK your business loan.
Ploughing your own money into a business is a proud thing to do, but it could end up in tears, it would be better to use the money that is already owed to you by clients, this will allow you expand, pay debts and you’ll be paid up front rather than having to wait for weeks and months for your payments.