Q: What is the most cost effective way to raise the finance for a small business at the start-up stage?
Aug 08 2007
Answered by: Mark Endersby Ask a question
The problem that most business start-ups face is a lack of tangible security and as such their options are somewhat limited. However, there are a number of schemes available that may be suitable for early stage businesses.
The Small Firms Loan Guarantee Scheme can be accessed via banks and other lenders. This can provide new start businesses with up to £250,000 but has quite stringent criteria and rests heavily on your business plan.
If you are buying any kind of equipment, machinery, vehicles or office furniture there may be asset finance solutions that are open to you. Some of these can help spread the cost of the VAT which can ease start up costs.
Invoice Finance is also a good option for start up businesses and will provide a flexible source of working capital. However, typically it is only suitable for businesses selling to other businesses on credit terms.
We would be happy to help if you would like to contact us at finance@fundingsolutionsuk.co.uk
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