Start‐up finance

Start‐up finance

Raising funding is often the first hurdle a small business entrepreneur may face. Our team of specialists has access to a variety of small business financing options and we will advise on the best route to raising finance and funding your small business.

Invoice finance – Factoring and Invoice discounting

There are a variety of ways in which invoices can be funded. The two basic products are Factoring and Invoice Discounting.

Both products release up to 90% of the value of the invoices outstanding, in advance, to your client. The funder takes a small fee (typically less than 1% of the invoice value) and charges interest while the invoices remain unpaid. Once the invoices are paid the balance is returned to you.

The security taken is a Fixed and Floating charge, and depending on the financial strength of your business a personal guarantee may be needed.

Both Factoring and Invoice Discounting allow for fluctuations in turnover and trading terms and they are especially useful for fast growing businesses.

Within these two products are plenty of variations such as:

– Whether the customer is aware of the facility (disclosed and undisclosed)
– Whether the collections are outsourced to the finance provider openly or discreetly
– Whether bad debt protection is needed

At Moorfields Commercial Finance we have strong relationships with a number of providers and we will work together to tailor the facility to best suit the business requirements.

Business Angel investment

Source investment from an Angel looking to finance new business ventures with high growth potential.

Angel Investors can invest on their own or as syndicates. They use their own finances to invest in small businesses, usually at the start‐up or during the early stage of development, and they take shares in return for equity. They then tend to use their own experience and contacts to support the growth of the business.

At Moorfields Advisory, we provide an assessment of your requirements and help to access the right people who may be interested in providing financial investment. We also provide guidance throughout the fund raising process.

Top tips for raising start‐up capital

  • Look at ways to leverage your assets
  • Know your options and be aware of the detail
  • Choose a specialist adviser who will use their network and specialist skills to source the best product for you