I’m just starting out with a new business and am having trouble getting a bank loan to get off the ground. What other finance options are available?
Factoring is a relatively inexpensive source of working capital for startups with no credit history or small businesses that can’t qualify for a bank loan. You sell your accounts receivable to a factoring company and get 80-90% of the invoices’ value within a day or two, and receive the remainder after the debt has been collected. Naturally some criteria do need to be met (your business must trade with other businesses, offer industry-accepted credit terms, and a minimum turnover threshold may apply). The safest bet would be to contact your bank or some of the many factoring service providers in the UK. You can get accurate price quotes once you’ve conveyed all the necessary details about your business, and then choose the most advantageous.