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5 reasons to grow your business with Crowdfunding Alternatives

Published on 2nd May 2019 - Last update on 6th May 2019

Whether you’re starting up or are looking to scale up, your first stop might be to appeal for funding using Investment Crowdfunding or Loan-based Crowdfunding (Peer-to-Peer Lending). Although this can be a great way of raising funds from external investors, crowdfunding does have its drawbacks which means it may not be suitable for every business. But if you’re looking to expand and grow your business, there are still plenty of crowdfunding alternatives available that could serve your needs just as well. So if you need access to external funding but don’t want to discuss your business plans publicly, or have grown too big for crowdfunding, here’s why you should consider exploring Crowdfunding Alternatives instead:

  • Access to a range of business finance products
  • Applicable to an array of business projects and goals
  • Suitable for a variety of financial situations
  • Access to a large lump sum
  • A range of terms available

What products could my business gain access to?

Although crowdfunding presents you with an online platform to promote the benefits of investing in your business, it’s not the only pathway available to you. If your aim is to reinforce growth, there are a number of crowdfunding alternatives available, thanks to the Alternative Finance industry, that could help in this pursuit. If you wish to move beyond crowdfunding and are looking for another way to obtain the funds you require, some of the products which could be available to you include Secured and Unsecured Business Loans, Merchant Cash Advance and Invoice Financing. Plus, because each of these products works in a different way to provide the support and confidence you require, you could even source a finance solution which operates more harmoniously with your business’ requirements and day-to-day operations.

Having trouble raising the sufficient funds from external investors? Has your business become too well established? Apply for a Crowdfunding Alternative, or learn more about how your business could benefit.

What can Crowdfunding Alternatives be used for?

Like Investment Crowdfunding and Loan-Based Crowdfunding, many of the products available carry no usage restrictions. This means that you can use these funds for anything from obtaining equipment, expansions, staff training, research and development, marketing and refurbishments to supporting your working capital. Therefore, choosing to explore alternative solutions to crowdfunding doesn’t necessarily mean compromising on the scope of your aspirations. It’s simply another way for getting your business from A to B, although lenders may wish to enquire what the funds will be used for.

What do I need to qualify for Crowdfunding Alternatives?

Because there is a variety of products on offer that each work in their own unique way to support your business’ growth, the criteria required can vary. For example, some products may require your business to possess a strong credit score or to offer collateral (in the form of business assets such as equipment, machinery or property). Meanwhile, other products may take a more flexible approach and focus on your monthly receivables or invoices. As such, you have access to a variety of finance products that could help you receive the funds that require. All you need to do ensure that you have a thorough understanding of each of these products so that you can make a well-informed decision that benefits the whole of your business.

How much funding could my business gain by using Crowdfunding Alternatives?

This can vary depending on the product you choose and how the funds are calculated. To give you an idea, you need to know whether funding is based on either the estimated cost of a project, the equity contained inside your unencumbered assets or your monthly receivables. Plus, whilst some finance solutions provide a set amount of funding, other products don’t possess a maximum limit to what you could borrow or have advanced. Therefore, similar to crowdfunding, no set limit is placed on what you could obtain.

What terms are available through applying for a Crowdfunding Alternative?

Whilst Loan-Based Crowdfunding offers short-term agreements lasting up 12 months, exploring Crowdfunding Alternatives could help your business gain access to a range of both short and long-term agreements. Because of the range of business finance products on offer, you could, instead, gain a short-term agreement lasting up to 3 years or even a long-term solution extending from 3 - 6 years and beyond, depending on your chosen finance product. The benefit of this is that by choosing to spread out the money that you borrow or have advanced, you can adjust the monthly repayments so that they align more closely to what your business can safely afford or how you operate. So in order to make an informed decision for maximum benefit to your business, it's important to fully understand the repayment processes involved before entering any commitments.

Exploring your Crowdfunding Alternatives?

Access to capital is fundamental to any business. Yet, during the early stages of your business’ development, obtaining it can often feel challenging. Although your first thought might to be to turn to crowdfunding or peer-to-peer lending, there may be other, more appropriate options available that you might not be aware of. As soon as your business reaches its second trading year, it could gain access to a wide range of business finance solutions thanks to the rising prominence of the Alternative Finance industry. But with so many products on offer, where do you begin? If your business has become too big for crowdfunding or can’t raise the funds that you need from external investors, apply for a Crowdfunding Alternative today, or find out more with Rangewell.

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David Harrison

David Harrison

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