New Business Loans – a great way to finance your company
New business loans are not designed for anyone looking to start a new business. They are also ideal for those businesses that want to expand, but need the cash to buy machinery, equipment or stock or even carry out major building alterations.
Obtaining a new business loan form a bank is a lengthy procedure. You have to prove that your business is credit worthy by supplying financial statements for a number of previous years. The bank will study your cash flow situation and determine whether you qualify or not. Even then, actually getting your hands on the cash will still take time, because the application has to go through numerous channels.
There is a much easier way to circumvent all these hurdles; it is called invoice financing. You simply contact a financing company, provide proof that you have sufficient outstanding collectable invoices and the company will give you a reply virtually immediately. In many instances you can have the cash in your bank account within a matter of a couple of days.
You will not receive 100% of your outstanding debtors upfront though. In most cases it will be closer to 70%, the actual percentage being dependent on a number of factors.