New Business Startup Loan - Financing Options for New businesses

If you’ve set up or operated a business during the first couple of years of its life you’ll know one of the main concerns is cash flow. It doesn’t matter how profitable the business is – without cash it can’t continue.

That’s why a new business startup loan is so important. The money you borrow provides essential working capital. It allows investment to be made in new equipment or stock without hitting cash flow.

Unsecured Business Loans

Often when a business wants to borrow money it needs to provide some sort of security. But if you’re looking for a new startup business loan you might not have security to offer.

So you’ll be looking for an unsecured loan. These are harder to find and often don’t provide as much money as you really need.

An unsecured loan is also quicker to arrange. This means you can get access to funds within days, making all the difference to a new business.

A form of lending that has all the benefits of unsecured loans and is also extremely flexible in the amount of money you can borrow is Invoice Finance – either Discounting or Factoring.

Invoice Finance for New Business

If you’re looking for a new business startup loan that’s unsecured you must take a look at Invoice Discounting or Factoring.

If every customer paid on the day you invoice, rather than 30 to 90 days later your cash flow would be so much better. That’s how Invoice Finance works – it injects cash into your business by releasing money tied up in your sales ledger.

This is what it looks like:

You raise an invoice on your customer for goods or services supplied
The lender immediately pays you up to 90% of the invoice
Your customer pays their bill, usually between 30-90 days later
The lender pays you the balance of the invoice, less a small charge

This means you can borrow up to 90% of the amount you invoice and you remain in total control of the entire process.

If you choose to use Factoring there’s the added benefit of the lender taking over your credit control, freeing you from an administrative burden.

Find out how much you could release from your sales ledger instantly online >>

Touch Financial Helps to Find Loans

We can help you to find the money you need for your business. We have already helped thousands of UK organisations looking for new business startup loans.

Because we’re independently owned we are completely impartial, so we give you the best advice. Our fees are paid by the lenders, not you, so our service does not cost you a penny.

As the UK’s leading online commercial finance broker we’ve got the experience and knowledge that will help you find the right finance solution for your specific needs. Make contact with us today for a no-obligation quote or discussion.

Compare factoring quotes instantly online >>

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Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.

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