Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 04 Jun

  Invoice Financing Options for Startups Without Any Financial History

  Invoice financing options for startups without any financial history are harder to find than for an established business, but still, options are available.

  Invoice Financing Options For Startups Without Any Financial History

  If you don't have any financial history or experience running a business that doesn't have to stop you from getting finance for a company.

  COMPARE QUOTES NOW

  Invoice Financing Without Trading History

  Traditional loans require an extensive financial history and creditworthiness, which many startups lack. Invoice financing relies on the creditworthiness of the startup’s customers rather than the business itself. This makes it an ideal option for startups with no financial history.

  Benefits To Startups

  One of the great advantages of invoice financing is that it doesn't always require a trading history - many entrepreneurs get a facility in place before they start trading. Some services such as factoring are often designed to assist people new to running their own company.

  This works such that the client receives two significant benefits:

  1. Cash against invoices within 24 hours of raising them
  2. Help to collect outstanding sales invoices

  In addition, bad debt protection can be added to prevent you from taking a bad debt if a customer fails. There are also sector-specific services such as payroll management that can be helpful to companies with a staff payroll to manage (such as recruiters). See our article on Types Of Factoring.

  One of the most significant advantages of invoice financing is the immediate improvement in cash flow. Startups often face cash flow challenges due to delayed customer payments - even if they are sticking to payment terms. Invoice financing provides quick access to funds, enabling businesses to cover their immediate expenses such as rent, raw materials and labour.

  This type of funding grows with your business. As your sales and invoices increase, the amount of financing you can access also increases. This scalability makes invoice financing a flexible solution that can adapt to the evolving needs of a growing startup.

  Overcoming Poor Credit History

  Even if you have a poor personal credit history, this type of funding is still likely to be available. This is because it focuses on the strength of your debts rather than the financial strength of you or your business.

  By Glenn Blackman