Entrepreneurs need to invest on average £94,000 to start up a new business, research has claimed.
250 micro, small and medium-sized businesses were surveyed by borro, which concluded that micro companies cost £41,458, small firms £103,816 and medium-sized companies £184,500 to set up.
More than a third of respondents needed to invest personal savings into their business, whereas one in 10 took out high-interest short-term loans.
Unsurprisingly, those who required a short-term loan to start their business had a higher average start-up cost, due in part to the associated loans and fees.
Invoice finance solutions for new starts
Here at Skipton Business Finance, we really feel new start businesses are crucial to driving the economic recovery in 2012.
As a lack of cashflow can really stunt new businesses in their early days, it's our priority to fund as many new starts as we can with flexible funding solutions appropriate to their requirements.
Invoice finance, which includes invoice factoring and invoice discounting facilities, also enables the client to access more money as their business grows.
Consequently we have a full ten year history of successfully funding a variety of different new starts, which we’ve very proud of!