There were 20% more new businesses launched this year than there were in 2010, according to figures released by credit agency Creditsafe.
Almost 500,000 new businesses were started in 2011, a major increase on the 400,000 started up in 2010.
160,000 were set up in London, with other hubs occurring in the South East, where there were 60,715 new start-ups, and the North West, centred around Manchester, with 46,000 emerging in 2011. David Knowles, business development director at Creditsafe, said of the figures, “This year has been difficult but the entrepreneurial spirit of the Great British public is alive and kicking. While there has been a higher number of business insolvencies this year, the number of new businesses set up over the last two years has also grown steadily. However it was stated that at least 16,000 of new start-ups in 2011 will go bust by the end of the year, often due to cashflow problems associated with many businesses’ first years of trading.
Cashflow Funding for New-Starts
Start-up businesses may often suffer from an inability to access traditional external finance facilities such as overdrafts or loans due to their lack of profit history. Even if they have issued many invoices and are showing signs of being successful, they may still be rejected for bank facilities and this can result in unnecessary insolvencies. This is where alternative funding solutions such as invoice finance can help start-ups in need.
Skipton Business Finance is able to provide invoice factoring and invoice discounting facilities to start-ups, which help release funds tied up in unpaid invoices, which may often take 30, 60 or even 90 days to be paid.
Why not find out a bit more about how new start-ups can benefit from invoice finance, or get in contact with us today to find out just how much money we can unlock from your invoices.