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Business Finance for new start businesses

It is still incredibly difficult for a new start businesses to obtain any sort of  business finance via the high street banks. The good news is that there are still a number of independent finance companies willing to provide funding, however they will do so very much on their own terms. It is slightly easier to obtain cash flow funding in the form of factoring or invoice discounting. The independent finance companies tend to be more flexible than the high street banks but there are a number of instances when we would recommend the banks for this form of finance.

Enterprise Finance Guarantee Funding or (EFG Funding) probably isn’t available for new start businesses. This form of finance is only rally available for businesses who have  good trading history, are profitable have a project that is viable form a rational and cash floe point of view however there isn’t enough security to enable the banks to make an offer.

Asset finance is available for new start businesses however as a rule of thumb only £10k of finance will be available for each director so long as a personal guarantee is available, the directors have a clean personal credit history and also have a reasonable amount of equity in their properties. Any new start business wishing to purchase assets costing more than £10k face a slightly more uphill struggle. I will tell you how in Mondays blog.

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XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

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