- 14 Nov
Factoring For A New Start Haulage Company
This is an interesting case that demonstrates just how flexible some UK factoring companies can be. We have just arranged a recourse factoring facility for a new startup haulage company handling frozen food. The company is operated by a foreign national, ex-driver, that was NOT a homeowner. These aspects may have posed a problem for some invoice finance companies.
Factoring For A Haulage Startup
Several of the aspects of this logistics deal would be a problem for some factoring companies, we were able to find them a funder that was able to accept all of them, not to mention the minimum size criteria that some factors will apply:
- Foreign national director with no prior experience of running a company.
- New startups in themselves are not accepted by many finance providers.
- Non homeowner - home ownership has increasingly become a requirement of many invoice finance companies. Despite the fact that their primary security is the underlying book debts of the company.
- Frozen food - this is another trade that some financiers don't like to handle, due to the risk of the failure of refrigeration leading to potential disputes over the loss of the frozen goods.
- Transport logistics and haulage - whilst this sector is widely accepted by factors, there are often concerns over contra trading accounts. These occur when the haulier delivers a load to a customer and then takes a return load, creating both a sales and purchase transaction with the same debtor. There is then the potential for the customer to offset their purchase invoices against their sales invoices that are due (a contra situation). Factors often fear these as it can reduce the value of the invoices that they rely upon as security for the prepayments that are given to the client. There are however many funders that will offer haulage factoring.
We managed to overcome all of these issues and find a factoring company that were pleased to welcome this new client on board with a recourse factoring facility. They will receive both prepayments against their sales invoices (that can be used to pay for costs such as fuel and other suppliers) and a credit control service. This means that the factor will chase up any unpaid invoices, so that the client can focus on running their business, rather than chasing delinquent debtors.
- Foreign national director with no prior experience of running a company.
- 19 Sep
Funding A Confectionery Manufacturer With Orders From A Supermarket
Another quirky example of a small startup customer that contacted us for funding help, where other invoice finance companies had been unable to help - due to the small size of the company.They were a small confectionery manufacturer that have traded as agents for a few years, but are developing their business by moving to supply as principals to supermarket chains.GET A FUNDING QUOTEThe had...
- 18 Jul
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.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...
- 14 Mar
New Start Recruitment Funding RPO Debtors
We have mentioned many times before how we have been able to help recruitment companies that need funding against RPO debtors.The issue with securing invoice finance against our PO debtors, is often that the finance companies can struggle to get the required credit limits, in order to facilitate the funding. This makes it a “shopping around exercise“ to find the providers that are able to...
- 07 Feb
Early Stage Funding For UK Startups Drops
Early stage funding for UK startups dropped by 15% in 2018, according to data published in Yahoo Finance by Beauhurst, a consultancy that track equity funding. Overall equity funding in the UK reduced to £7Bn in 2018, down from £8.6Bn in 2017 and there was a 10% decline in the number of deals completed. This is a concerning drop that may create a need for alternative forms of startup...
- 21 Dec
Which Factoring Companies Will Fund Startups?
There is plenty of miscommunication going on around the industry. We were recently contacted by a newly formed startup company that had spoken to a few factoring companies and had been told that they needed around half a year's trading behind them in order to secure invoice finance.This may be the case for some factoring companies, but there are others that will happily accept new startup...
- 31 Oct
Further Help For Startup Businesses
As an conclusion to our free business startup guide, below are some useful further resources and sources of further information, help and advice for new startup businesses:FundInvoice are able to help you find a range of different business finance services from business loans, to receivables financing, export finance and trade (or import) finance.Please call Sean on 03330 113622 or request a call...
- 30 Oct
New Startup Business Checklist
The following business startup checklist is a high level list of the issues and items you need to think about when starting a new business.It is not in any order of importance and some of the items on the list are at a very high level, so there may be a number of subsidiary issues that you have to address under any of the following points.However, it should give anyone starting a new business...
- 12 Oct
Business Startup Guide To Funding
A critical aspect of starting a new business is ensuring that you have sufficient money to trade. This could be to cover the initial startup costs e.g. purchasing equipment, and to cover ongoing costs e.g. staff wages and buying stock.DISCUSS YOUR FUNDING NEEDSA cash flow forecast is an essential part of the business plan for any new start company, it may be produced by your accountant with your...
- 09 Oct
How To Set Up Your Business Startup
The first thing to say is that you will likely need the help of an accountant, and perhaps a solicitor to help with setting up your business. This article gives some general information based on our own experience, but your situation may vary.As I mentioned in the first part of this business startup guide, the key to a successful venture is having a product or service that is in sufficient...
- 05 Oct
Marketing A Startup Business
The production of a marketing plan is at the core of any new startup business, it is likely to be a standalone sub-plan within your overall business plan.How you are going to promote and market your products, or services, will determine the volume of sales that you achieve, and most likely the financial success of your business. You don’t have to do the marketing planning and delivery...
- 07 Sep
Producing A Business Plan For Your Startup
Writing a business plan is critical to launching a startup business. It allows you to clearly set out your business idea, set goals and measure progress against those goals.You might be interested in the top 3 pieces of advice for new startups that we heard from fellow entrepreneurs.A business plan is a written document that sets out the objectives and strategy for your business venture,...
- 30 Aug
Validating Your New Business Idea
In the last post in this series the Free Business Startup Guide, I covered developing a unique business idea. This post concerns validating that business idea. This means how to check that it is likely to be successful with demand from customers.This is one small step in setting up your own business, but it is critical to its future success, hence it has this post dedicated to it.GET ADVICE ABOUT...
- 29 Aug
Free Business Startup Guide
This is a free business startup guide that gives general advice about starting your own business. It's not comprehensive, and professional advice should always be sought from an accountant and/or solicitor.This guide takes you through a number of areas that you need to think about if you are starting your own business. It is based on our own experience of launching our own venture.GET BUSINESS...
- 12 Apr
Business Loans For New Start-Up Companies
Business loans can be provided to new start-up companies. There is an appetite for lending to startup companies, whether or not the Directors are homeowners.This may be good news if you are thinking of starting a company and need some capital to get you up and running.It is not the case that all lenders will provide loans to startups. Funding Circle for instance, state in their investors guide,...
- 05 Apr
Interest Only Loans For Start-Ups
Finding finance for new start-up company can be difficult, but there are funders within the market that can help.We have just received notification from Nucleus Commercial Finance, one of our funding panel, that they have launched “Start-Up Finance”, a specialist interest only loan product for new start companies.The new company can borrow between £25,000 and £20 million, secured against...