Thousands of business owners are looking for alternative sources to raise finance for starting or growing their business.
If you’re one of them, in this article you will find main ways to fund your business without a bank loan.
Alternative finance providers are often better aligned to your needs – not only because they can offer less strict criteria than traditional lenders like banks, but also because they can be more flexible.
1. Family loans
Relatives and loved ones are more likely to trust you with their money than an outsider, and they will probably demand lower interest and fewer incentives than a commercial organisation.
2. Commercial card
Commercial card is a great way to handle on your day-to-day expenses, boost your cash flow and get more time for the work you love.
We are working with HSBC and our advisor can assist with application for credit card. Also you can have a look at the main features of business credit cards on the Funding Options website.
There are hundreds of government grants available for small businesses. Government grants are available in all kinds of forms – from reduced costs and free equipment, to cash awards to help your new business grow. You can find a list of available grants on GOV.UK or speak to your local council.
4. Start up loan
Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.
Start Up Loans offer an affordable source of finance to help new and early stage business owners bring their plans to life. You can borrow between £500 and £25,000 with fixed rate interest rate of 6% p.a.
Apply for funding on the Start Up Loans website.
Crowdfunding is a way for people, businesses and charities to raise money. It works through individuals or organisations who invest in (or donate to) crowdfunding projects in return for a potential profit or reward.
If you are interested in raising money, you can go to one of the crowdfunding platforms, for example Crowdcube.
6. Peer-to-peer loans
This is a form of borrowing and lending between individuals, or ‘peers’, without a traditional financial institution such as a bank or building society being involved.
If you want to borrow money, the peer to peer websites match you up with people willing to lend it to you. To apply for a loan go to one of the lending sites for example Funding Circle and register, select the amount you want to borrow and over what term.
7. Asset finance
Asset finance is a type of lending that gives you access to business assets such as equipment, machinery and vehicles, or enables you to release cash from the value in assets you already own.
Considering a lease, hire purchase, rental or alternative finance arrangement, check on the Funding Options website.
8. Business loan
Business loans is a broad category, and can refer to lots of different products. Find the right business loan: types available, lenders and loan providers, eligibility criteria, security and guarantees, interest rates, business loan calculator on the Funding Options website.
We have partnered with number of finance providers who can offer finance solutions tailored to your needs. Contact us to arrange a call with our business consultant to discuss alternative sources to raise finance for starting or growing your business.