3 ways to fund your business

There have never been more ways to fund your business than today. The financial crisis has made the funding landscape more flexible than ever! Here we will talk about different ways you can fund your business.

1. Bank lending is not dead

In fact, banks are lending, according to SME Finance Monitor, the usage of external finance (loans, overdrafts and credit cards) increased the most towards the end of last year since mid 2012. Banks can provide business loans if you have sufficient personal or business security such as a house or a car. Our partners can assist you with getting competitive rates with the banks whether it be against a commercial property or a personal asset. Even if you’ve been rejected by the bank, our expert advisers will look at your business accounts and assets, and may even be able to secure you a better lending rate than the bank!

2. Financing assets for your business is easier than getting a bank loan

What if purchasing a machine or technical equipment sped up the way you do business and make you more profits – but you don’t have the cash to buy these upfront? Asset based lending is a popular increasing trend, but sadly, not many business owners are aware of this. The concept is simple, a company or investor will buy the equipment up front, and own the asset. You then lease the equipment off that company and can use it as necessary. Depending on the type of agreement, you may even be able to own that equipment after a certain length of time, and if you can’t keep up with payments, the asset finance lender would retain ownership of that asset. There are many different types of asset finance, and we’ve summarised them here.

3. I have an outstanding invoice, it won’t be paid for a month, but I need that cash sooner!

Over £200bn a year are provided to businesses through factoring or invoice discounting. Factoring is a method which allows you to sell your invoices to a company, less a fee. Typically 75-90% of the invoice is released within 24 hours, with the remainder (less fees) released once the invoice is paid. There are two options for invoice finance: invoice factoring settles outstanding invoices directly with the customer, and invoice discounting is the process of taking out a business loan that’s secured against your business’ outstanding invoices. Our partners work around the clock to get your business competitive rates for invoice finance – find out more and get in touch with us here.

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