More than one in 10 small business owners have risked their own homes as a guarantee for a loan in the last year, according to research published in the Mortgage Finance Gazette
The survey asked 300 owners and directors of small businesses about their methods of securing finance, with 12% revealing they’d put their own home on the line for a loan.
A third (33%) of respondents would consider using their home if they couldn’t access any other sources of external finance to deal with issues such as poor cashflow and late payments.
With business confidence still low and worries about the EU economy persisting, many small businesses are looking at other methods of funding to give themselves a cashflow boost, including securing loans against homes and valuable items and using personal funds to inject capital into their business.
In fact, 17% of businesses surveyed have asked friends and family for additional funds, as small business owners struggle to determine appropriate, accessible funding solutions.
Invoice finance for a cashflow boost
Has your business been searching for external funding suitable to your requirements? Have you considered invoice finance?
With invoice finance solutions, such as invoice factoring and invoice discounting, you don’t have to put personal assets at risk to access funding. We allocate funding based on a company’s order book, advancing cash up-front for unpaid invoices.
Why not find out more about the sectors and types of businesses we fund, or give us a call now to discuss your funding options with our team of experts.
Invoice Discounting is the most popular form of invoice finance in the country in terms of the number of clients and is a growing form of business finance as a whole.