Introduction
Early-stage cash is a constant headache. You’ve got a great product. You’ve landed customers. But waiting 30, 60, even 90 days to get paid? Brutal. Some turn to invoice financing – a quick fix. Others go big, chasing equity. Yet, there’s a sweet spot: SEIS/EIS funding benefits.
In this post, we’ll walk through:
– Why invoice financing feels tempting.
– The real perks of equity via SEIS/EIS.
– How Oriel IPO makes it easy, commission-free, and tax-smart.
– Practical steps to get started.
Let’s dive in.
What is Invoice Financing?
Invoice financing (or factoring) means you sell unpaid invoices to a funder. You get cash fast. The funder takes a fee. End of story.
Pros of Invoice Financing
- Instant cash injection.
- Non-dilutive (you keep 100% of equity).
- No lengthy board approvals.
Cons of Invoice Financing
- It’s a loan in disguise. You rack up fees.
- Debt on your balance sheet.
- Doesn’t build long-term investor relationships.
- No tax relief for backers.
Imagine you invoice a client for £10,000. A platform like FundThrough might give you up to 95% up front (minus fees). Great for one-off needs. But when your growth calls for hundreds of thousands, that fee pile grows fast. You’re borrowing against your own work.
Plus, it doesn’t bring seasoned angels or advisors on board. You just swap invoices for cash. Sure, you beat the net terms game. But you lose out on SEIS funding benefits like genuine tax breaks and investor expertise.
The Power of SEIS/EIS Equity Financing
Enter the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). Two HMRC-backed programs designed to turbocharge startup growth. Here’s why they matter:
Top SEIS Funding Benefits
-
Income Tax Relief
– Investors get up to 50% tax relief on SEIS investments.
– They invest £10,000, and up to £5,000 comes off their tax bill. -
Capital Gains Exemption
– Profits on SEIS shares can be free of Capital Gains Tax.
– Sweet for early investors who believe in your mission. -
Loss Relief
– If things go sideways, investors can offset losses against income tax.
– Reduces downside risk for angels. -
Annual Investment Limit
– Startups can raise up to £150,000 under SEIS.
– Combined with EIS, you can unlock up to £12 million over time.
These perks make risk-taking attractive. You’re not just borrowing money; you’re inviting investors to back your vision. They bring funds, networks, mentorship. And they stick around longer than any factoring partner.
EIS Top-Up: Scale Without Sweat
When you outgrow SEIS limits, switch to EIS. It offers:
– 30% income tax relief on investments up to £1 million per year.
– Carry back relief to the previous tax year.
– Relief on capital gains for new investors.
Stack SEIS and EIS. That’s double tax relief. Indeed, SEIS funding benefits don’t stop at cash. They reshape your investor pool and rally more believers in your cause.
Equity vs Invoice Financing: A Head-to-Head
Let’s compare both options side by side.
Key Factors
– Funding vehicle
– Cost
– Dilution
– Strategic value
– Tax perks
Invoice Financing
– Debt-style, non-equity
– Fees can be 1–5% per invoice
– No dilution
– Short-term cash only
– No tax relief
SEIS/EIS Equity
– Shares in your company
– No ongoing debt costs
– Some dilution, but fair trade
– Access to angel networks
– Huge SEIS funding benefits
Which one wins? For quick cash, invoice financing edges ahead. But for sustainable growth, SEIS/EIS takes the crown.
Real-Life Scenario
You’re an SME in London building a clean-tech gadget. You have £50k in invoices. You could:
– Factor them at 3% fee (£1,500 cost).
– Raise £50k via SEIS with investor on-board – they pay £50k, and claim up to £25k in tax relief.
Net result? You lose £1.5k in fees, zero investor partnership, and that fee has to be covered. Or you onboard an investor, pay no fees, gain a growth partner, and serve your mission.
That’s why smart founders lean into SEIS funding benefits.
Why Oriel IPO is Your Go-To Platform
So far, we’ve talked theory. Now, let’s talk action. Oriel IPO is the UK’s commission-free SEIS/EIS investment marketplace. Here’s how we stand out:
-
Commission-Free Model
You pay a transparent subscription, not a cut of your funding. Keep more of every pound raised. -
Curated, Tax-Efficient Investments
Every startup is vetted. Investors get a hand-picked selection that qualifies for SEIS/EIS. No meerkats, no cattle calls. -
Educational Resources
Webinars, guides, checklists. We demystify every step: share allocation, tax paperwork, compliance. -
Investor Onboarding and Support
We facilitate investor checks, handle regulatory bits, and ensure smooth fund transfers. -
Community and Networking
Meet like-minded founders and angels through virtual pitch events.
This isn’t just a listing board. Oriel IPO is a launchpad. A place where you tap into all SEIS funding benefits without the usual jargon and hidden fees.
How to Get Started on Oriel IPO
Ready to shift from invoice anxieties to equity empowerment? Here’s your path:
-
Sign Up
Create an account in minutes. No lengthy credit checks. -
Complete Your Profile
Share your pitch deck, financials, and SEIS/EIS eligibility details. -
Vetting & Approval
We review your documents, confirm HMRC criteria, and vet your business model. -
Go Live
Launch your pitch on the marketplace. Investors browse, ask questions, and invest. -
Receive Funds
Qualifying investors transfer money. You keep more, thanks to zero commission. -
Ongoing Support
Lean on our webinars and one-to-one sessions to manage investor relations and tax filings.
It really is that simple. And while you’re busy scaling your core business, Maggie’s AutoBlog isn’t relevant here – yet our educational hub equips you with everything you need. No guesswork. Just actionable steps.
Addressing Common Concerns
You might wonder: “But isn’t equity dilution scary?” Sure. But consider:
– The trade-off: small share for a committed backer.
– SEIS/EIS investors often bring expertise, contacts, and credibility.
– With Oriel IPO’s model, you avoid royalty demands and hefty debt.
Or: “I need cash right now.”
Yes, invoice financing gives speed. But equity via SEIS/EIS on Oriel IPO can often close in weeks – and you don’t inflate your liabilities.
Wrapping Up
Invoice financing solves day-to-day cash flow. Equity via SEIS/EIS powers your long-term vision. And Oriel IPO brings every SEIS funding benefit under one roof: no hidden fees, curated investors, and full support.
Ready to move beyond short-term fixes? Start building relationships that last. Tap into tax relief, expert networks, and commission-free funding.
Make the switch today. Your growth story deserves more than just cash on demand – it deserves the right partners and the full suite of SEIS/EIS rewards.
