Alternative Business Funding

Discover how alternative sources of finance can move your business forward

Suitable for well-established businesses

Dedicated team of underwriting experts

Decision in one working day

No early repayment fees

What is alternative business funding?

Alternative Business Funding is a non-traditional way of business finance, without using a high-street bank. Since the financial crisis traditional lenders experience more challenges in small business financing. A finance gap emerged in the market, after which many alternative lenders entered the new financial landscape. Today, many modern lenders use technology as an enabler to optimise processes in traditional lending. These businesses are called fintechs (from Financial Technology) and together they offer a variety of alternative business funding options. Examples of these are financial lease, factoring, crowdfunding and online direct lending. Many small businesses are leaning towards alternative business funding as the process is considerably faster and requires fewer assessments, evaluations and documents compared to a traditional bank.

Why are businesses exploring alternative business funding?

Traditional business funding most often involves applying for a normal business loan with a traditional high-street bank. This often involves a lengthy application process that requires physical documents, lengthy procedures and difficult assessments that can present too many hurdles for SMEs . Furthermore, during periods of economic uncertainty, many banks are more reluctant to fund small businesses due to higher risk, having a great affect on small business funding. Higher chances to be approved in combination with swift and easy online processes cause SMEs to explore alternative business funding more and more often.

Discover the power of alternative business funding

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“Today we supply most of the UK’s top retailers with frames, mirrors and framed art. We will continue to develop products and gain market share while maintaining our service levels. That is what our customers expect and has been the key to our success.”

Reflex

Benefits of Alternative Business Funding

Use alternative business funding to make your business flourish

  • Boost your cash flow

    Protect your business from short-term cash flow challenges. A business alternative funding solution can give you financial stability if you need to make additional payments or cover unexpected costs.
  • Bridge receivables

    Keeping your finances healthy can get difficult. This is especially true when you’re handling seasonal shifts or waiting on outstanding invoices. Ease the pressure with short-term alternative funding.

  • Invest in new equipment or inventory

    Preparing for a busy season or introducing a new product? An alternative short-term choice can supply the working capital you need to restock your inventory and meet customer demand.
  • Revamp your location

    Attract your customers through an ambiance that will make them want to visit again. With an alternative business funding option, you can refresh your premises or upgrade to a brand-new look.

Alternative Business Funding - FAQ

  • What are alternative lenders?

    Alternative lenders are new businesses that are providing financing options for small businesses outside of the traditional high-street bank lending. Small businesses especially benefit from alternative lending as it is more likely that they will qualify for loans.
  • What sort of businesses qualify for alternative forms of financing?

    Well established SMEs with a consistent revenue stream and a profitable business are the most likely to qualify for alternative forms of financing. Criteria depends on the lender in question. Ideal applications will have been operating for at least a few years and have a steady annual turnover of at least £500k.
  • Is alternative business funding risky?

    This depends entirely on the type of funding, where the finance is coming from and the type of lender. Most alternative lenders act responsibly and have their clients’ interests at heart. Small businesses should check online reviews, such a Trustpilot, and do their own research into the alternative lenders. They should check the lender’s underwriting process, responsible lenders will never approve a business for more than it can carry.

Get Started Today

Speak to our client services team on 0203 308 9188 or have a look at our brochure.

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