Alternatives to a business bank loan

In view of the current economic climate, businesses here in the United Kingdom have found it increasingly difficult to obtain finance through the more traditional avenue of the major high street banks. Regrettably, it tends to be the small medium enterprises (SMEs) that usually have the greatest difficulty in raising funds by way of commercial lending yet it is often that very sector that requires support to grow. The future with mainstream lending does not appear to bode well with the recent announcement of the UK loosing their triple AAA rating and adverse press activity in relation to the banks. However, enough of the negativity as there are alternatives to a business bank loan such as the increasingly popular peer-to-peer lending schemes – it is knowing where to go to find them. You will be pleased to note that, here at Choice Loans, we have excellent relationships with the main providers of peer-to-peer commercial lending packages and can provide you with guidance as to which is the most suitable scheme for your business.  So, who are the major players in this market that provide excellent alternatives to a business bank loan: Funding Circle:

• Ideal for limited companies that have traded profitably for at least 2 years, have an average to good credit rating and the deal is straightforward.
• Unsecured loans of up to £100,000 available
• Secured loans of up to £500,000 available.
• Interest rates available in the range of 5.5% to 9.5% through the online auction facility that enables potential investors to compete for your business.
• Loans can be made available within days.
• Fees of 3% for loans of 1 and 3 years or 4% for loans of 5 years.

ThinCats:

• If the deal is rather more complicated and the lending criteria of Funding Circle cannot be met ThinCats may be the preferred route.
• Good for larger amounts with loans of up to several million pounds potentially available.
• Secured lending only.
• Interest rates of between 8% to 13%.
• Fees of around 4%.
• Loans tend to take a little longer to process than that of Funding Circle.
• Sponsors prepare deals, monitor your business's performance going forward and offer business guidance.

Other alternatives to a business bank loan include: - ReBuilding Society – loans of up to £50,000 are available on an unsecured basis over 5 years and can include partnerships. Funding Knight – loans of up to £100,000 are available on an unsecured basis over 3 years with a re-payment holiday option. So, as you can see, there are numerous alternatives to a business bank loan. However, it is important that your proposition is packaged correctly and submitted to the most suitable lender. In that respect, here at Choice Loans, we have a vast amount of experience in dealing with such matters, in particular for those in the SME sector. In the first instance, may we suggest that you contact us on 0845 126 0350 to discuss your requirements or complete our Commercial Loan enquiry form here.