• 30 Seconds On - Startup Funding For New Companies

    30 Seconds On - Startup Funding For New Companies

    This is my latest explainer video in the series "30 Seconds On Finance".

    It explains how you can raise finance for a new start-up company, even if you have already been declined by a bank for a bank loan or an overdraft.

    Finance Without Assets Or Track Record

    With a new start-up company, often they have no assets, and no trading history. Hence banks are sometimes not keen to support them with traditional forms of finance, such as loans and overdrafts. Even if they will grant a small overdraft, it may not provide the level of working capital that a fast growing new business needs.

    Invoice Financing For Startups

    Invoice financing for startups works in a different way. The finance is based on your outstanding debtors or sales ledger, rather than the strength of your company. Therefore, there is not the same requirement for you to have a strong financial position, or a track record for your company.

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    The even better news is that as your sales grow, so does the level of finance provided. It grows in line with your company turnover, so you have a ready stream of working capital.

    Qualification Criteria

    The qualification criteria are not what you might expect. Providing you are raising sales invoices on credit terms, to other businesses, it is likely that you will be eligible for some form of invoice finance.

    How The Funding Works

    The funding works by releasing 85% to 100% of your invoice values immediately that you raise your invoices. You get cash upfront without having to wait for customers to pay. This means that if you have a sales ledger of a number of invoices outstanding, you can get immediate funding against all of them.

    The remaining balance of the invoices has passed to you once your customers pay, less the charge for using the service. We have many funders on our panel who are keen to support new start-up companies in the UK. 

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Examples of just a few of our finance partners:

nucleus
ultimate finance group
bibby
skipton
positivecashflow
igf