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Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
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How can I fund my business?
In many instances, freelance contractors fund their business initially from personal resources.
If you are lucky enough to get a contract immediately, dependent upon the agreed invoicing and payment cycle, you will have to fund your living expenses until you receive your first paument.
If you are working through an Agent, agree with them that you can invoice after one or two weeks work so that the length of time that you need to fund yourself is as short as possible.
Many experienced freelance contractors use a dedicated credit card to cover their expenses during this time. You usually get up to 56 days interest free credit with these, which in most instances should be more than enough time. However, credit cards can be expensive so ensure that you repay the outstanding balance each month.
Dependent upon your plans for the growth of your business, there are other funding options;
1. Bank Overdraft - this is probably the most flexible option in that once agreed, the only fees incurred are the interest accrued when you utilise the facility. Most businesses will have a small overdraft facility of say £3-5k.
2. Bank Loan - if you are planning on building your business and taking on premises and staff, you may benefit from a Bank Loan. This provides you with a sum of money immediately and a regular repayment pattern that allows you to budget effectively. If you have a trading history, gaining a Bank Loan shouldn't be too difficult, however, if you are new to contracting, your Bank may want you to take the loan out in your personal name or may require security in the form of a personal guarantee if the loan is in the Companies name.
3. Business Lease - if you are buying equipment or vehicles, a business lease is another alternative. Here for a fixed monthly repayment, you gain the benefit of the equipment immediately. Dependent upon the type of lease, you may never actually own the equipment/ vehicle - you are simply 'renting' it from the lease company
Sit down with your Bank Manager or Accountant and discuss your plans for the business. They will be able to advise you on the most appropriate funding options for your specific needs.
As you grow, other funding options become available such as VC funding or Angel Investment.
See Also
Planning the growth of your business
Recommended Links
Business Growth Mastery - provides support in growing your business
If you are lucky enough to get a contract immediately, dependent upon the agreed invoicing and payment cycle, you will have to fund your living expenses until you receive your first paument.
If you are working through an Agent, agree with them that you can invoice after one or two weeks work so that the length of time that you need to fund yourself is as short as possible.
Many experienced freelance contractors use a dedicated credit card to cover their expenses during this time. You usually get up to 56 days interest free credit with these, which in most instances should be more than enough time. However, credit cards can be expensive so ensure that you repay the outstanding balance each month.
Dependent upon your plans for the growth of your business, there are other funding options;
1. Bank Overdraft - this is probably the most flexible option in that once agreed, the only fees incurred are the interest accrued when you utilise the facility. Most businesses will have a small overdraft facility of say £3-5k.
2. Bank Loan - if you are planning on building your business and taking on premises and staff, you may benefit from a Bank Loan. This provides you with a sum of money immediately and a regular repayment pattern that allows you to budget effectively. If you have a trading history, gaining a Bank Loan shouldn't be too difficult, however, if you are new to contracting, your Bank may want you to take the loan out in your personal name or may require security in the form of a personal guarantee if the loan is in the Companies name.
3. Business Lease - if you are buying equipment or vehicles, a business lease is another alternative. Here for a fixed monthly repayment, you gain the benefit of the equipment immediately. Dependent upon the type of lease, you may never actually own the equipment/ vehicle - you are simply 'renting' it from the lease company
Sit down with your Bank Manager or Accountant and discuss your plans for the business. They will be able to advise you on the most appropriate funding options for your specific needs.
As you grow, other funding options become available such as VC funding or Angel Investment.
See Also
Planning the growth of your business
Recommended Links
Business Growth Mastery - provides support in growing your business
