Starting A Business Loan
You want a loan because your business needs money. Perhaps you’re looking for help covering day-to-day running costs while the business becomes established. Maybe you want to expand and need money to buy new equipment or stock.
Whatever the reason, you want to borrow some money. Finding someone to lend it to you is not going to be difficult if you can demonstrate the business is viable. But finding the right loan is harder. You don’t want to be starting a business loan only to discover later you’ve chosen the wrong way to do it.
Finding the Right Business Loan
If you’re not familiar with the range of lending products available you should take advice before committing to a loan. There are plenty of business support agencies who can help, or you can speak to a commercial finance broker, such as Touch Financial.
These services should not cost you anything – there’s no fee for dealing with us, for example. What we can do is explain the options for starting a business loan and help you to find the solution that meets your needs.
Business Loan Example – Invoice Finance
One way of starting a business loan is through invoice finance. This effectively releases cash from your sales ledger. It gives you the advantage of not requiring any security, and it’s a modern, flexible approach to lending.
The process is very simple:
- You bill your customer for supplying goods or services, giving them credit terms.
- The lender pays you as much as 90% of the invoice value, often within a day of billing.
- The lender does the credit management on your behalf, raising statements and getting payment.
- You’re then paid the outstanding balance of the invoice, with a small fee deducted.
Not only are you being paid up to 90 days early, you’re also freed from the hassle of credit control.
While the process is simple, the options available through invoice finance are more complex. This is why it’s important to take advice. Every lender offers slightly different terms, and more flexibility is being added all the time as the lending products are tweaked to meet the needs of business.
Find out how much you could release from your sales ledger instantly online >>
Let Touch Financial Help You Find A Loan
We’re the UK’s leading online commercial credit broker and you can use our service for free. We’re also independent of all the lenders, which means we’re focused entirely on giving you the best possible advice.
If you’re thinking of starting a business loan complete one of our online forms or give us a call. It won’t cost more than a few moments of your time, and you’ll be getting expert feedback from our team who’ve helped thousands of other organisations.
Our role is to find the right solution for your commercial finance needs. Make contact – and let us save you some time and money today.
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- Learn more about starting a business loan
- Read about a long term business loan
- Alternative to long term business loans?
- Overview of business variable rate loan
- Learn more about a business fixed rate loan
