There are a number of specialist lenders that will provide Invoice Finance for Startups in the UK. You do not need to have any trading history to get a facility in place.
However its important that you work with one that matches your sector, plus the debtor quality and quantity of your invoices will also be important.
How To Get Invoice Finance For a Startup Business
As a new start business invoice finance is one of the few types of funding that you can access straight away without any financial accounts. If you are starting a business in a sector that commonly requires granting credit to customers. Then funding the gap between suppling the goods or service can be difficult.
Its very common in some B2B industries for customer invoices to be settled in 30, 60 or even occasionally 90 days from being raised. This is common in sectors such as:
- Construction & Contracting
- Recruitment & Employment Agencies
- Logistics & Freight
- Haulage & Trucking
Invoice finance for startups helps to ease cashflow pressures in growing businesses, by giving access to cash tied up in unpaid invoices.
If you would like to get an invoice finance quote for your startup, then use one of the options below:
Different Types of Invoice Finance For UK Startups
If you are an start up business looking for invoice finance, its important to note that there are a few different types of invoice finance.
There is factoring and discounting, useful as a ongoing revolving line of credit. Then there is single invoice factoring for one off, large orders.
Read on to see the different types.
Factoring For Startups
The most common type of invoice finance available for new startup businesses is Factoring. It works like a revolving credit facility and grants you ongoing access to up to 90% of your unpaid customer invoices. Some banks/lenders may require an initial contract of 12 months, although this varies between lenders.
This is how it works:
- Apply for a credit limit on your customer with the Factoring lender.
- Supply the goods or service to your customer
- Provide the invoice to the lender
- Access up to 90% of the invoice value straight away
- Repay the lender when the customer pays, plus any fees
If you are going to need ongoing access to unpaid invoices, then this finance option is worth considering.
Fill in the form below to get get in touch for a free no obligation quote.
Single Invoice Factoring For Startups
If you need quick access to cash or just need to release funds from a one off invoice, single/selective factoring my be an option for you.
Single invoice finance is suitable for new start up businesses with no trading history. Although your customer will likely need to be an established business with a reasonable credit score.
Contact Us to check if your outstanding invoice is factorable.
Invoice Discounting For Startups
As a new start businesses its unlikely that you will be approved for a discounting finance facility. This is because discounting providers are normally looking for history of strong in house credit control and a well established client base.
There may be some exceptions to this, i.e. if your startup is fast growing and already has a in house creit control function.
Get An Invoice Finance Quote For Your Startup
Let one of our expert invoice finance brokers arrange a quotation for you from our large panel of lenders.
Call Us On 0161 5469128
Alternatively fill in the form below and we will get in touch ASAP.