- 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 companies that have no trading history at all. Is is a case of knowing who to speak to.
Office Equipment Startup
This prospect had not traded at all, but they were planning to deal with some good quality debtors, transacting a significant amount of turnover each month in the office equipment and consumables sector. They also wanted to secure bad debt protection, sensible for a new company, which will protect them in the event that a debtor should fail.
Despite it being a new start venture, we immediately were able to introduce them to several well known, substantial invoice funding companies that are happy to accept new start companies. It would be an understatement to say that the customer was pleased to have a number of options placed on the table, after initially thinking that they were going to be rejected for invoice finance completely.
Our key skill at FundInvoice is keeping abreast of who will offer what within the sector, so that we can use that knowledge to match customers with funding partners from our large panel of financiers.
Help For Startups
It is frustrating for new ventures to be given such limited information, that is why we put together our free Guide For Startups, which includes help about raising finance. Rest assured, even if you have no trading history whatsoever, there are still plenty of option within the receivables financing arena to raise funding to get your new venture off of the ground with a strong cash flow. Our guide also has lots of other help and advice about various aspects of setting up a new venture.
Need A Quick Chat?
If you are at the early stages of launching a new company, please call us on 03330 113622, we are always available to have a conversation on the phone, without and charge and without any obligation for you to go any further. Sometimes new startups just want to get a feeling for the charges and the type of funding that might be available, before they press the launch button for their new venture. We have been throught the process ourselves so we are always keen to help other startups.