One of the most obvious routes to small business funding is a business bank loan, however in reality these can be difficult to be approved for unless you have collateral to speak of, or you are willing to put up personal security to cover the debt if the business were to cease trading before the loan had been paid off.



Starting with your own bank can be a good strategy, your existing bank will be in a good position to merit you for your good standing and track record. It pays not to over look other lenders, even if your bank offers you a competitive rate.

Factoring (Invoice Finance)

Factoring can be a low cost way of raising quick funding. It is ideal for business with steady sales in a business to business industry. Factoring companies will provide business funding based on the value of your unpaid invoices. This is a viable route if you operate with high margins to justify the associated fees.

Credit Cards/Overdraft

Credit cards are great for unexpected purchases and for expenses. For a new company with low initial launch costs credit cards can be a viable option. There are many interest free rates available so it can be a quick and effective source of business funding. An overdraft facility is another option, however this is an unstable form of finance as the bank can withdraw the overdraft facility whenever they choose to.

Equipment Leasing

If you require business funding for the capital outlay for machinery or expensive equipment then leasing could be a safe bet. Leasing spreads the cost of owning important business equipment over a set length of time enabling the operation to grow pretty quickly.

Outside Investment/Equity Finance

Seeking business funding by releasing equity shares in your business can be highly beneficial as outside investors, such as Business Angels can add expertise and knowledge to your business as well as the funding you need. This form of funding also carries less risk to your possessions as you will not typically be required to provide any personal security to cover the funding needed.

An effective way to attract investors to your business is to register with Edge Venture and record an elevator pitch, this will get your case for business funding in front of hundreds of potential investors.