Starting a business is a very exciting time for budding entrepreneurs , but it can also be the most stressful. The following guide is a quick overview of how you could raise start-up cash for your business.
Own Money
The first place to look when starting a business is your own bank account, though this can be a risky option. Capital tied up in property can be used via an equity release mortgage deal, though a redundancy package or pension windfall can also provide funds to invest in a venture.
Business Loan/Cash flow Funding
Approaching a bank for business loan is a common route to funding a company start-up. Any lender will want to review a detailed business plan before imparting any funds and will expect collateral, in the form of either the firm’s assets or a property. Securing a loan against the latter is risky.
It may well be that a combination of products may be required and as such loans/mortgages/factoring/invoice finance could possibly all work in tandem to secure the funding package required.
Perhaps the business has access to a Guarantor or can provide additional security?
However be realistic in that any funder will wish to see that detailed plan and need convincing that your “new venture” will have the ability to repay the funding.
