In the current economic climate it is still just as difficult for a new start business to obtain any sort of funding. As a general rule of thumb in order to be eligible for funding from a high street bank or finance company you must have been trading for at least 3 years, be profitable, provide a good old business plan, provide inside leg measurements and of course they will need your wife and kids as security. Hey and what about the EFG funding. Does anyone know a business who has managed to secure any EFG funding? The good news invoice factoring is probably the easiest form of finance available for any new start business. And that includes asset finance of which are bloody experts!
Invoice factoring which enables a business to raise cash against unpaid invoices will provide most new start business with the ability to trade within the most difficult period of any new start business. As a business raises an invoice a factoring facility will provide up to 90% of your cash immediately. When your customer pays your invoice to your factoring company they will repay the remaining 10% of your invoice less any charges. As a new start business you will only be offered factoring which will also provide a full credit control service and depending on the spread of your customers you may be able to obtain non recourse factoring which will offer credit insurance. It is even relatively easy to obtain funding if you adverse credit. The best plan of action here would be to be fully open in your dealings as it is better to get all those skeletons out in one go.
XL Business can help you choose the appropriate factoring company for your business. How we guide you to the right factoring company will depend on your location, the expected turnover and the particular sector of your business. Please will free to give us a call to discuss your own requirements.
