What is start-up finance?
When you finally take the plunge and set up your own business, that big idea often needs an injection of finance to get it off the ground. Asset finance for new businesses allow you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.
An important benefit of finance for new businesses is preserving the use of the credit card or overdraft for contingency and operating expenses. Using these options first could have a significant effect on your ability to obtain additional finance later on.
Asset finance for start-ups involves a lender purchasing the required items and leasing them back to a business, who makes monthly payments for an agreed term. Both hire purchase and equipment finance leases are available, which have different potential tax advantages and payment structure. You’ll need to make the decision which one is right for your business.
Cashflow loans for new businesses are available, though best-suited to companies with some trading history, or in instances where a cross-company guarantee is possible. You may need to provide a personal guarantee.
How to get start-up finance
Start the process by completing our enquiry form, sending us some details about yourself and your business. A dedicated account manager will review your enquiry and call to discuss your needs. After gathering further information, we will complete applications and submit proposals on your behalf. Portman is both a lender and a broker so once we understand your individual situation, we can discuss the right option for you. If eligible, we can buy the assets ourselves through Portman Leasing or work through our panel of specialist lenders. If your proposal is accepted, the equipment you need will be ordered and you can get on with growing your business.
What can new start finance be used for?
Significant investment is often required to get the business running, with costs such as:
- Premises fit-out
- Furniture or equipment
- Tools and machinery
- Commercial vehicles or director cars
- Materials, inventory or stock
- Technology and marketing costs
- Franchise buy-in fees
Your Portman Account Manager will work with you to find the right deal for your business.
Am I eligible for start-up finance?
Eligibility depends on your individual circumstances and those of your business. Many businesses will find that they are eligible for finance but the products and rates available will vary depending on several factors. With new businesses, your own credit history, your business plan, how much you have personally invested and details of any other businesses are important. At Portman we operate as both a lender and a broker and so can use our own funds or search the market to find the best lender for you.
Is a start-up loan right for me?
You are best placed to decide if your business is ready for finance, we recommend seeking professional advice, but benefits of a new start finance include:
- Get what you need to make your business a success from the start
- Preserve your own cash and make repayments whilst your business generates revenue
- An alternative to using an overdraft or credit cards
- Secure fixed monthly repayments
- Retain ownership of the business rather than giving away a % share
- Build your business credit score for the future
How much a new-start business is able to borrow depends on a range of factors including: your credit history and personal circumstances, your business plan and projections, any other businesses you may be involved in and the assets they have and the assets you are looking to purchase. The best option is to enquire with Portman and one of our Account Managers can discuss your individual needs.
Portman can guide you through the application process. After discussing your needs and collecting business documents we can save you time, completing proposals and applications on your behalf. In the first instance, the documents we would typically need are: copies of a recognised photo ID, bank statements, a copy of your business plan and possibly a copy of your CV. For established businesses we would also ask for a copy of your management accounts, profit and loss and balance sheet.
Finance can be paid out in as little as 24 hours, however, the length of time is dependent upon circumstances and the speed with which you can provide the necessary information to support your application.
A poor credit history is likely to limit your ability to get finance. For new businesses, your ability to obtain finance is based on a number of factors including your turnover or projection, your business plan, your personal wealth and homeownership status, other businesses you may be involved with. A poor credit history will affect the rates you are able to obtain and may prevent you from obtaining credit entirely.
Excellent communication and help throughout the process. Easy and prompt emails. Highly…Daniel Cooper
Portman and the entire team are great to work with, know their lenders and products incredibly…Marney Howe
Very smooth operation
I have now dealt few times with Portman Finance and it has always been very smooth and…Anthony ienco
We used Portman Finance to secure finance for a new restaurant we are opening. Jack Weston…David B