We outline below other possible sources of finance:
The Factoring option provides you with finance against invoices that your customers have not yet paid. You can usually receive up to 85% of the value of the invoice immediately. You will receive the balance (less costs) when the customer pays the invoice.
Hire Purchase (HP) finance
This option is usually used to finance the purchase of equipment. Your business buys and ultimately owns the equipment but payments of capital and interest are spread over an agreed period of time.
This is a method of financing equipment you do not need to own. The equipment is rented rather than owned and the rental payments are spread over several years. There can also be the option to fix maintenance costs as part of the agreement (contract hire).
You should try to match the finance to the purpose for which it will be used.
|Working capital||– overdraft or factoring|
|Equipment and vehicles||– fixed-term loan, HP or leasing|
|Property||– long-term mortgage|
|Development / start up||– investment finance|