Alternative Finance

What does "Alternative Finance" mean?

The first thing we'll say here is that if your bank can fund you in a manner that suits you, you should definitely go with that that. Alternative Finance doesn't compete with what High Street banks do, rather it is a range of alternative options for when the bank can't help or of when the solution they offer isn't quite what you want.

SO what might the scenarios be when a High Street bank might not be the best option? Here are some advantages to alternative finance that may make it more suitable to you that the bank:

  • 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's more flexible with security: Banks will normally want a charge on property for any substantial lending. In the world of Alternative Finance, a personal guarantee is normally good enough. If you don't want the inconvenience and cost of having a property valued and a charge put against it, there are alternative finance options that may suit you. And if a charge is needed, there are alternative finance lenders who will go to a third or even fourth charge to fund you
  • It can be flexible with adverse credit histories: If you or your business have adverse credit, there are alternative finance lenders who can still help. Most often this refers to clients who may have had a late credit cad payment or some other small misdemeanour that means the box on the bank's form can't be ticked and so they can't get a bank loan - these are the easy cases for us to assist. However, did we tell yu about the time we arranged a £30,000 loan for a business with 14 CCJs? True story. Or the business in a CVA for whom we raised £45,000? It happened. We've even had clients who were ex-bankrupts 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