SETTING UP A BUSINESS

Branching out from the banks when starting up a business

In 2013 there are many business minded people looking to start up a business, and usually accordingly to figures by the Department for Business four out of five businesses only start to actually think about money only a few days before actually needing it. With the internet a ready place to find funding it is thought that most people only spend an hour searching around the web, and with most people using the big four banks. With many finance brokers in the commercial market sector, speaking to one is a must to see how they may be able to help and advice.

With the NACFB (National Association of Commercial Financial Brokers) being active since 1992, it’s job as the national trade body for finance brokers is to help bring businesses and funders together in one place. With a massive choice of over 100 different funders available, all with something different on offer.  It can be very daunting talking and using the current batch of high street banks, so it can be a relief to find something different that isn’t readily available on the high street.

Biggest issues effecting every new business

The main issues effecting every small business start up in the UK have virtually remained the same is the last 3 to 5 years, and with the scarcity of funding and a reluctance to lend to most businesses. Banks like Lloyds TSB are probably the worst in lending, as it is virtually impossible to even borrow £5000 as reported by many small businesses. Natwest are slightly better, but every business director has jump through many hoops to borrow such marginal amounts of money. We have heard and experienced the tough financial times on many people attempting in setting up a business.

A few things you should know about finance

1. The big four High Street bank aren’t the only lenders.
2. There is quite possibly a local broker within 3-5 miles from you.
3. Don’t spend hours searching and learning about all the lenders out there, find someone who is already one.
4. Look at every aspect of your business, how to get paid. Do you get paid on time? Debt Collection could be another option.
5. Remember some smaller financial businesses can offer more specialised services.
6. You can deal with people direct, one on one. No more calling call centres!