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Business Bank Loan

One of the most typical routes to business funding is a loan from your business bank, however in the real world these can be difficult to be accepted for unless you have assets to speak of, or you are willing to put up personal security to cover the debt if the business were to cease trading before the loan had been paid off.

Starting with your own bank can be a good strategy, your existing bank will be in a good position to merit you for your good standing and trading history. Even if your bank offers you a favorable rate it pays not to over look other lenders.

Invoice Finance (Factoring)

Factoring can be a low cost way of raising quick funding. It is ideal for business with steady sales in the b2b market space. Factoring companies will provide business funding based on the value of your unpaid invoices. This can be beneficial if you operate with high margins to justify the associated fees.

Charge Cards, Credit Cards or an Overdraft

Credit cards are great for unexpected purchases and for expenses. For a new company with low initial operational costs credit cards can be a effective option. There are many interest free rates available so it can be a quick and effective source of business funding. A bank overdraft is another option, however this is an unstable form of finance as the bank can withdraw the overdraft facility whenever they choose to.

Equipment Leasing

Many business require funding for machinery or expensive equipment, in these cases leasing could be beneficial. Leasing spreads the cost of owning important business equipment over a set length of time allowing the operation to scale up pretty quickly.

Outside Investment/Equity Finance

Seeking business funding by releasing equity stakes in your business can be highly beneficial as outside investors, such as Business Angels can add experience and knowledge to your business as well as the funding you need. This form of funding also carries less risk to your possessions as you will not usually need to provide any personal guarantees to cover the funding required.

An effective way to attract investors to your business is to register with Edge Venture and record an elevator pitch, this will present your business funding opportunity to many investors at once.