Alternative Finance

What does 'Alternative Finance' mean?

At Choice Loans we see Alternative Finance as funds raised in ways that are different to conventional loans. This could mean it's arranged faster than a traditional bank loan or with more flexibility for adverse credit than conventional lenders allow. Or it could simply be using a new method to raise money that you may not have come across before. 

Some people think that alternative finance will be cheaper than the banks, and while this is sometimes the case, it isn't always. Alternative finance is often about getting loans for people or businesses who wouldn't usually get them. In short, it's about what you do when the banks say 'no'.

Here are a few reasons why alternative finance is different:

  • It can be quicker: Using a Short Term Unsecured Business Loan we can get your business up to £100,000 in less than 24 hours through peer-to-peer lenders on our Unsecured Personal Loan panel, using the relevant technology.
  • It can be flexible with adverse credit histories: If you have adverse credit we can still get funds using a guarantor loan. If it's your business that has an adverse credit history then we can use an Asset Backed Loan. We've even had clients who were ex-bankrupts or even companies in CVAs who raised finance using a Merchant Cash Advance. Alternative finance opens doors that were previously closed.
  • It can be flexible for new-start businesses or those that haven't borrowed before: For individuals, we use guarantor loans to help those who haven't borrowed before build their credit record. For businesses that are new we can lend short term unsecured business loans of up to three years, as long as at least one of the directors is a homeowner who can offer a personal guarantee (NB we WON'T need to place a charge on their house, unlike the high street banks).
  • It can be cheaper: Using a Crowdfunded Business Loan will give your business access to unsecured finance at great rates. Banks generally won't do unsecured loans above about £25,000 but our crowdfunders can go as high as £250,000, with multiple loans if you are eligible.

Most innovation in alternative finance has happened in business lending. Here are some examples of the alternatives available to businesses:

1.    Crowdfunding: Up to £250,000 unsecured (more if you have security) is available over five years to established, credit-worthy and profitable businesses

2.    Non-bank lenders: Short term unsecured business loans of up to £100,000 are available over 15 months (or up to £50,000 available over three years) arranged in a matter of hours or just a few days, with very little paperwork required.

3.    Merchant cash advance: Unsecured finance for retailers taking card payments. Get finance now based on expected future card takings.

4.    Pension led business finance: use a frozen pension to invest in your business

5.    Overdraft alternatives: Like normal overdrafts but from private companies lending at much more flexible terms and in larger amounts than the banks

6.    Asset backed loans: For clients with heavy adverse credit - if assets are provided as security, you can get a loan for up to three years.


As you can see there are a growing number of alternatives out there for businesses to raise finance. Our job is to help you navigate your options and help you decide which is best for you. We don't charge you any fee so if you'd like to speak about your options without obligation, call us on 01494 410 125

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