Benefits of start-up finance
Key benefits of start-up finance include:
- Get your business off the ground more easily
- Expertise and support
- Build credit
Starting a new business can be challenging, but securing funding doesn’t have to be. Start-up finance provides access to much-needed capital that can help you get your business off the ground rather than relying on your own savings and those of friends and family.
What is start-up finance?
Start-up finance can refer to a range of loans, grants, and equity investment. Some business owners choose to source equity funding through angel investment and crowdfunding, whereas others use debt-based avenues such as bank loans, asset finance and invoice finance.
We specialise in supporting businesses with debt-based solutions, especially those that have already benefited from the government’s start up loan scheme and require additional finance.
How does start-up finance work?
Start-up finance is typically bespoke to your circumstances, though a typical start-up loan journey is as follows:
Initial review: You would provide us with a copy of your business plan and cashflow forecasts, along with any financials and business bank statements if you’ve already started trading.
Credit assessment: Lenders often view start-up businesses as more risky than established businesses so there will be a strong focus on your creditworthiness and strength of your business plan. Your prior experience will be relevant and we will work with you to make a proposal as strong as possible. Where you have assets available to offer as security, we are far more likely to be successful in sourcing you a facility, though we can still source solutions where security isn’t available.
- Drawdown: The type of facility we source will depend on your circumstances. Once the facility is approved, you will be able to utilise the funds promptly to support your business getting established and scaling.
- Repayment: Your repayments will depend on the type of facility taken and we will detail these clearly so you can build the costs of finance into your business plan and forecasts to ensure it’s the right facility to take.
