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For entrepreneurs starting up their first venture, access to finance can be a problem, particularly when cash flow is tight! However, there is a wide range of funding sources available to you, to help get your new venture off the ground.
The economic climate has been tough in recent years, but industry is bouncing back, particularly in the SME sector, where start-ups and new ventures are appearing in large numbers – and often proving to be very successful! However, one of the main challenges for new start-ups, is to get enough working capital to tide the new operation over until invoice payments come in. Most start-up businesses will also require investment capital – for equipment, machinery, branding, stock and other assets. We take a look at some of the financial products available to support new business growth.
1. Flexible loans Money and plant.
From personal bank loans to payday and logbook loans, the market has a good offering of financial lending products available to individuals starting their own venture. If you have a car that is less then ten years old, insured and taxed and you are in receipt of a regular income, you can use a logbook loan calculator to see how much you could receive with a logbook loan. This is a great flexible route for those who want to access cash quickly to get their business off the ground and loans are available from  500 right up to  50,000. The issuing company will simply hold onto your V5 document until you have cleared off your loan and there are no hidden costs, or any hassle with the process.
Alternatively, banks offer a variety of personal loans at different interest rates and borrowing via overdrafts, credit cards and other means. Just bear in mind that lending from banks can have restrictive terms and conditions and the advertised interest rate may not be the one that you are actually offered. Credit terms from banks also tend to be a lot stricter than with the lenders of logbook and other flexible loans, who often use different criteria than simple credit reports to make lending decisions. For entrepreneurs who have experienced problems with their finances in the past, more flexible loan products are likely to be of particular interest.
2. Other means of financing your big business idea
Crowdsourcing is a new concept that uses the power of online networks to get investors to buy into your business and fund it directly. It is an interesting model and one that is likely to grow over the next few years. Credit cards are a classic flexible way of buying important items, with extra protection offered for purchases over  100 by credit card. However, the cards must be paid off quickly to avoid racking up big interest costs. Overdrafts can be useful for businesses and act as a buffer for cash flow problems, but again, the costs can be high and must be negotiated with the bank. For advice on the best type of loan for your business, speak to financial advisor.

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