Can a startup or new company get business finance?

Being new does not shut the door, but it does narrow it, and the honest position is that the youngest businesses have the fewest choices and pay the most.

The reason is simple: most lenders lean on trading history to judge risk, and a business that has been going for a few months has little to show them. That said, there are routes that work earlier than a standard term loan:

• Invoice finance. Because the funder is advancing money against invoices your customers owe you, the strength of those customers matters as much as your own track record. A young business with strong, creditworthy customers can often access it sooner than it could a loan.
• Asset finance. If you are buying equipment, the asset itself provides much of the security, which can help a newer business.
• Startup-friendly lenders. A minority of lenders are more comfortable with early-stage businesses, usually at a higher price.

One eligibility point to note: we arrange finance for incorporated businesses, limited companies, LLPs and PLCs, rather than sole traders or ordinary partnerships.

The most useful thing at an early stage is a realistic read on your options rather than a scattergun of applications. Tell us where you are and we will tell you straight what is achievable now and what may open up as you build a track record.