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Do you need finance at all? |
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Why use finance?
Using Credit Cards
Invoice Factoring
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About CYB
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So you have your fantastic business idea, but every (or almost every) business idea needs some capital to start with. You might need money to buy stock, pay for for rent up front or even just to pay yourself a small salary while you get going. Really, you should have planned your exit from your job so that you already have a stash of sustenance money for this very reason, but nobody is perfect!
It is certainly possible to start a business with a tiny amount of money, almost nothing infact, using equipment you might have already. An example might be a cleaning company. All you need is a vacuum cleaner, some basic cleaning materials and a car. If you plan to set up a high street restaurant, you will probably need a loan of some kind.
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There are several ways to finance your business, some you may have heard of such as Bank Loans or Overdrafts, and some you may not, such as Invoice Financing. There is a place for all types of finance, but often going straight to the bank will not be the best option, and certainly consider using an independant broker to get ideas and quotes for your specific requirements is a must.
- Mortgage Equity Release
If you have owned your own home for more than three years, the chances are you have instant access to a substantial cash reserve in your property. It is tempting to use this as an easy source of cash but you need to be aware that if the business fails (and many do, including some great ones) your house is at risk if you fail to keep up the repayments. Don't discount it completely, but be sure you have the backing of your family and keep a plan B close to hand.
- Friends and Family
Another potential source of finance but be extremely careful. Unless your friends and family won't miss the money if you lose it, find another source of funds or you may be forced to find another source of friends!.
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