Setting up a business can be daunting, but firms can access a number of flexible funding solutions besides traditional business loans and overdrafts to support their growing venture. Factoring and invoice discounting are particularly well suited to generating working capital without putting pressure on cash flow.

Starting a new business can be a challenging step, as the cost of purchasing premises, raw materials, equipment, paying wages and completing the first orders can put an immediate strain on cash flow.

And as order sizes begin to grow, many fledgling firms are in danger of overstretching their cash reserves as outgoings outweigh incoming payments, a situation compounded if a high concentration of debt rests on a single customer.

It is therefore crucial that new companies secure the correct finance option to support their growth aspirations.

Our funding solutions are more flexible than traditional options such as overdrafts and business loans, helping firms service bigger contracts by using the cash tied up in existing assets.

Asset based lending can generate cash at a rate and scale that suits the short and long-term requirements of a firm by unlocking the value of machinery, stock or a growing order book.

Lloyds TSB Commercial Finance’s factoring facilities can assist growing companies with their credit management and cash flow discipline by taking full responsibility for running the sales ledger, enabling firms to reduce debtor days and maximise stock turn.

Our finance options are ideal for firms looking to:

• Bridge the gap between completed orders and the receipt of payments from customers
• Support new business wins and fulfil contractual agreements by securing funding to purchase raw material costs and pay wage bills
• Fund investment in marketing and product innovation or differentiation

As new businesses often rely on a narrow sales ledger when they start trading, the effect of bad debt can be more acute for start up enterprises.

Debtor Protection is an extra feature offered by Lloyds TSB Commercial Finance to its customers, insuring you against bad debts by paying outstanding invoices should a debtor become insolvent.

Contact us to find out more about how Lloyds TSB Commercial Finance’s flexible working capital solutions can assist your start up business.

(Alternatively to find out how much you can raise by using our factoring and invoice discounting services, use our quote engine.)

The provision of credit or leasing services by us is subject to your meeting our Credit approval.  Please ensure that you only apply for credit or leasing services that you can comfortably afford.