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5 reasons to grow your business with Alternative Finance

Published on 18th June 2018 - Last update on 27th November 2018

Although external funding is a major aspect of building and maintaining your business, the fact remains that there are many UK SMEs who are still unaware of the Alternative Finance Industry and what benefits it has to offer. This means that, without knowing, you could be cutting yourself off from the funds you need to complete key growth projects or overcome any obstacles that may be standing in your way. If the traditional route has proven unsuccessful or you’re looking to explore what other finance solutions might be available when making your decision, the Alternative Finance Industry might be able to help. Offering an essential lifeline to both SMEs and established businesses, some of the many benefits that Alternative Finance has to offer include:

  • Access to a wide range of finance products
  • Access to large lump sums and advances
  • Suitability for a wide range of purposes
  • Available for a wide range of financial situations
  • Faster decision speeds

What Alternative Finances solutions can I apply for?

With the Alternative Finance Industry at your disposal, you can still gain access to the same great products as you would with your local high street bank, plus a variety of other finance solutions that they might not cover. This means a higher chance of sourcing an agreement that matches your business’ needs and how you operate more closely. By choosing to explore the Alternative Finance Industry before or whilst making enquiries with your bank, you could apply for anything from Secured and Unsecured Business Loans, Invoice Finance, Bridging Loans, Commercial Mortgages, Overdraft Replacement, Asset Finance and Inventory Finance to Merchant Cash Advance and Refinance. So if you’re in need of external funding, why not maximise your overview of the business lending landscape by exploring what the Alternative Finance Industry has to offer?

Have a growth project you want to start work on? Need help raising the necessary funds to do so? Apply for an Alternative Finance agreement or learn more about how your business could benefit.

How much money can I borrow?

Although some finance solutions, such as secured business loans, only offer up to a certain amount of funding (£5,000 - £1,000,000), other products aren’t subject to such restrictions. The reason for this lies in how each individual product functions when it comes to deciding how much funding to provide and the purpose of the agreement. This means that collectively, there’s no set limit to what your business can borrow with the Alternative Finance Industry. However, lenders may also impose their own restrictions based on how much they’re willing, or able, to lend which is why comparing the entire business lending landscape is so crucial.

What can Alternative Finance be used for?

Alternative Finance can be used to achieve any number of projects and goals, whilst also providing you with the means to overcome any obstacles that stand in your way. Although some products are suitable only for specific purposes, there are plenty of business finance solutions available that carry little or no usage restrictions. What this means is that funds that you may acquire could be used to benefit virtually any aspect or area of your business. So if you’re looking to obtain new equipment, support uneven cash flow, purchase property, carry out refurbishments or gain access to emergency funding, for example, the Alternative Finance Industry could be what your business needs to succeed.

What do I need to qualify for Alternative Finance?

Qualifying criteria depends entirely upon the type of finance you’re looking to apply for. Although Secured Finance solutions generally inspire more confidence from lenders and may offer lower interest rates, this does mean presenting unencumbered assets (equipment, machinery, vehicles or property) as collateral. This means that if you fall behind in the repayments, the lender will gain the right to repossess and remove those assets from you. Meanwhile, Unsecured products do not require you to offer lenders security. Although this can prove a useful alternative if you lack sufficient assets or are unwilling to put them at risk, unsecured agreements can be more difficult to acquire and usually carry higher interest rates.

Another aspect to consider before applying is your current financial situation. As well as making sure that you’re able to provide the necessary documentation, you’ll usually be asked to give a lender access to your credit profile. This allows them to form a stronger understanding of your business, the risks that are involved and how you operate. Although adverse credit may not always lead to a rejection it will, however, affect how much interest you’re charged throughout the agreement. Therefore, the weaker your credit score, the more interest you’ll be required to pay. If you’re worried about how your credit profile may affect your application, or you need access to a larger lump sum, you could consider offering lenders a Personal Guarantee.

How soon could an agreement be arranged?

This depends on the type of finance solution you’re thinking of applying for and the complexity of your request. That said, you could acquire an agreement in as little as 48 hours with the agreed funds arriving in your business account soon after. In order to make sure that you receive the funds you require, and without delay, make sure you have all of the necessary documentation to support your application ready beforehand. This should all be outlined in the paperwork provided by the lender and will help minimise the need for them to chase you up.

Need help growing your business?

Acquiring the funds you need to achieve your short and long-term goals can be a headache for any business owner. Nevertheless, exploring what external funding opportunities are available is a vital requirement if you’re to grow and remain sustainable. This is where the Alternative Finance Industry can make a big difference. By choosing to explore this industry you could gain access to a wider range of business finance solutions from an ever-increasing number of business lenders. However, although this is great news for any business, this also makes sourcing an appropriate and cost-effective agreement on your own much harder. This is where our services and expertise can help.

At Rangewell, we’re an Access to Finance specialist working with over 300 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. We’re with you every step of the way. So if you’re looking to grow your business, apply for Alternative Finance today or find out more with Rangewell.

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David Harrison

David Harrison

Content writer