- 17 Apr
Deal Completed - Invoice Finance For New Start Carrier Business Overdraft Not Available
Another case study, this time for a small new start carrier business based in Yorkshire. This was a classic case of a new-start business that needed working capital but had been unable to secure the funding through their bank via an overdraft or loan. This is quite typical of a new start business as they often do not have the assets, trading history and hence financial accounts that a bank needs in order to consider an overdraft or term loan.
We were able to help by finding the startup business an invoice finance deal that will allow them to generate the working capital they need to cover costs such as fuel, staff, vehicle leasing etc. When they undertake a delivery, they raise an invoice and the invoice finance company provides a percentage of that invoice to them immediately, rather than having to wait for it to be paid on credit terms. The balance of the invoice is paid to them one the customer pays, less the invoice finance company's charges.
Invoice finance is freely available to start-ups and new start businesses that have no trading history, no financial accounts, no tangible assets and no tangible net worth.