Every business needs finance, yet obtaining it can be one of the most difficult parts of running your business.
 

To help you find the right type of finance for your business, here is an introductory look at the main types of business finance, including; factoring, invoice discounting, bank loans, credit cards, grants, leasing, outside investors, family and friend loans, and the small firms loan guarantee. 

The article includes various links to more detailed information so you can help make your mind up.

Factoring and Invoice Discounting

One of the quickest forms of low cost business finance is factoring and invoice discounting (often known collectively as Invoice Finance), where you can get up to 85% of the value of your invoice immediately; and the remainder (minus the factoring company’s fee) after the money is collected.

Factoring is one of the best ways to get quick finance, improving your cashflow and allowing you to make the most of your sales without risking late payment.

How Does Invoice Finance Work?

Put simply, if you have sold a product for £1000, a factoring company would give you up to £850 for the invoice.

Once the invoice has been paid the factoring company will take their fees from the remaining £150 and give you the rest.