This is a common question and many clients come to us for our 5-star service and recommendations on how to achieve start-up finance.
It could be you have a transport business and you are interested in Truck Finance or maybe a Brewery and want to know about startup Brewery Finance.
The first piece of advice I would offer is to work out a business plan. Not only will you need it to secure finance if you have no track record but also for your own business to keep track of your own progress.
Once you have your business plan put together the next important thing to look at will be cash flow.
Work out a cash flow plan of how much money you need for equipment, staff, all of your overheads. Then work out what you need for working capital for at least the first 12 months, 36 months would be better and will provide a much better safety net for the first 3 years in business which some would argue are the most difficult.
So now you know how much money you need you will need to decide if you want to use cash or raising finance or investment.
By far the easiest way to start is to finance any assets using asset finance. This could be on a truck, van or trailer finance.
Its best to be as open and honest as possible with your broker they are there to help you not pick holes in your plan or your finances.
If your business is in Haulage and you need Trailer Finance you should have a plan built around the following;
How many trailers do you need?
How many customers do you have?
How many customers might you lose in a year?
How much cash do you have and how long will it last?
These key questions will help you build a plan for your finances.
Overall your broker will be pro-active in making sure they sure the best option for you. If you can’t get any finance then your broker won’t get paid. This will work in your favour.
The finance companies will want to help you make the best decision for you and your business so don’t be put off by questions about your cash flow your experience or your projections.
You may want to consider if you have any assets you could raise finance against or do you have any security you can give to a funder to make them more comfortable. This could be some property or a high-value car that is unencumbered from finance.
If you wanted some truck finance then putting deposits against the finance agreement will be very helpful as this would make the assets secure for the funder. A standard deposit will be anywhere from 10-30% depending on how old your business is.
To summarise
- Work out a business plan
- Calculate at least 12 months (preferably longer) cash flow.
- Work out a plan for how much money you need to purchase assets to keep your business going.
- Talk to your broker to work out a plan.
Please get in contact by phone or fill out our apply now form for more details we are more than happy to offer free advice to help you and your business.
