There are many different ways of raising funds to help your business achieve its potential. We have lenders who will provide start-up capital, or funds to refinance, expand or even purchase an existing business. It is not always essential to have property to offer as security, although this does usually bring down the cost of borrowing. Lenders may consider securing advances against non-business assets or even, in certain circumstances, unsecured short term loans for company payroll.

We use a range of lenders from high street banks, with their strict lending criteria and very competitive interest rates, to specialist lenders with a more flexible approach to funding. These niche lenders offer alternative solutions for businesses who are unable to provide up to date financial information or have a poor credit history.

Most businesses cease to trade because they run out of cash, even if they are trading profitably. Many businesses are unaware that they are sitting on a very valuable asset if they sell goods or services on credit. This asset is their debtor book which can easily be turned into cash by the use of factoring or invoice discounting.

Invoice factoring can provide a professional sales ledger management solution to your cashflow problems. The factoring company can advance up to 85% of your invoice value within 48 hours and then pay the remaining 15%, less a small service charge, when they have received payment from your customer. Non-recourse factoring can also provide protection against bad debts.

Invoice discounting works in a similar way to factoring but you retain control of the debt collecting process. With confidential invoice discounting, your customers will not even be aware that a third party company is involved.

A further source of short term funding is company payroll finance. A specialist lender will advance the cost of your gross monthly payroll, including employer’s NIC, unsecured for up to 60 days and without the need for personal guarantees. The lender will invoice you for the gross cost of the monthly payroll together with their interest and service charge on 60 day terms at the time of the advance. There is no requirement to use this facility all the time; payroll funding can be used as and when required.

Buying a Franchise is seen by many as a safer way to start a new business. You are buying a business model that has, in most cases already been tried and tested successfully by many other people.

The downside however, is that the cost of buying a potentially good franchise can be quite high. The initial requirement will not only include the franchise fee but also stock, equipment, a car or van and an amount of working capital to ensure that the business does not fail before it has had chance to get established. Stock, equipment and a means of transport, if required, are often included in the franchise fee but working capital is usually an additional necessity for the franchisee. To assess the amount of working capital needed to get your franchise up and running, it will usually be necessary for you to produce a detailed business plan and cashflow forecast. Harrison Business Finance can produce the plan for you, to ensure the best chance of obtaining the funding you require.

Most lenders will require security in the form of a second charge on either your residential property or any other property you may own. They will also expect you to contribute a percentage of the purchase price from your own funds. Other lenders may just require a personal guarantee without the need for extra security. The viability of the business plan is fundamental to obtaining the best funding solution.

This scheme is appropriate for small to medium sized businesses that may have viable business plans, but are unable to obtain a conventional loan because they do not have sufficient assets to offer as security. The Small Firms Loan Guarantee (SFLG) helps to overcome this by providing lenders with a government guarantee against default in certain circumstances.

The guarantee covers 75% of the loan amount for which, the borrower pays a 2% premium on the outstanding balance of the loan to the Department for Business, Enterprise and Regulatory Reform (BERR). Loans can be guaranteed up to £250,000 with terms of up to 10 years. The scheme is available to qualifying UK businesses less than 5 years old and, with an annual turnover of up to £5.6million. It is available for most business purposes, although there may be certain restrictions, and for businesses in most sectors.

A well presented business plan is an essential document for the future success of your venture. It presents your ideas and vision for your business in a structured format to prospective investors and funders. It details your funding requirements and shows your ability to repay your borrowings over a defined period. It is usually the first source of information about your business that a lender will see and needs to be presented in a way that will get their attention and interest. Harrison Business Finance can produce the plan for you, to ensure the best chance of obtaining the funding you require.