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Benefits of Alternative Finance

Published on 14th May 2018 - Last update on 16th September 2019

For your business to thrive and succeed in achieving a sustainable future, making sure that you’ve got all the necessary resources to nurture its development is vital. This is why external funding is so important for businesses, regardless of size or sector. But if you’re an early stage SME, acquiring the funds you need isn’t always as straightforward as you’d like. Although high street banks still play an essential role in supporting British businesses, the rules and regulations that they must abide by may put them in a position where they’re unable to help. In response, the Alternative Finance Industry has steadily grown to fill the void that has been left behind. So if you’re looking for external funding or the means to complete your business-related goals, some of the many reasons for exploring what the Alternative Finance has to offer include:

  • Access to a diverse range of business finance solutions
  • Less stringent criteria
  • Suitable for a variety of purposes
  • Faster decisions

What Alternative Finance solutions are available to my business?

Alternative Finance offers you access to funding from somewhere other than your bank. However, one plus point is that you may even gain access to products not on offer through the more conventional routes. As a result, exploring what the Alternative Finance Industry has to offer could increase your chances of sourcing an agreement that takes into account how your business operates and its current financial situation. However, to give a clear picture of what external funding opportunities are available to your business, you could apply for anything from Secured and Unsecured Business Loans, Merchant Cash Advance, Invoice Finance, and Inventory Finance to Working Capital Finance, Cashflow Finance, Property Finance or Asset Finance.

Got an essential business project that needs funding? Been turned away by your bank? Apply for Alternative Finance or learn more about how your business could benefit.

What do I need to qualify for Alternative Finance?

What makes Alternative Finance such an invaluable funding tool is how accessible it is to many types of business, regardless of which stage you’re currently at. Yet, although alternative lenders may impose less stringent criteria requirements, they will still perform all the necessary checks before deciding whether or not to offer you an agreement. But what makes this industry so open is that each of the products available focuses on a different aspect of your business. So whilst some products may require you to possess a strong Credit Profile or provide security, other solutions may look at factors such as Past Income, Unpaid Business-to-Business (B2B) Invoices, personal savings or the amount of equity stored in your unencumbered assets.

So no matter where your business stands, you could find a funding solution that’s appropriate for your goals and financial standing. Just remember that although adverse credit may not always be used against you, lenders will use it to decide how much interest to charge throughout the course of the agreement.

What can I use Alternative Finance for?

Thanks to the Alternative Finance industry granting you access to so many different forms of business finance, there’s no limit to the ways it can be used. Depending on your chosen product, Alternative Finance could help you acquire new equipment, purchase property, perform renovation and refurbishment projects, smooth out uneven cashflow, provide emergency funding, gain cash injections or refinance existing commitments. So, no matter how you aim to grow your business or what you’re hoping to achieve, the Alternative Finance Industry could be exactly what you need to succeed.

How soon after applying can I get a decision?

Depending on your chosen product and the complexity of the request, you could receive a decision in as little as 48 hours, with the agreed funds arriving soon after. This is ideal if you need the financial support sooner rather than later, especially during emergencies. As well as flexible lending requirements, what makes this possible is that many alternative lenders run tighter operations with smaller teams. This means that they’re able to skip much of the bureaucracy that may have been encountered whilst using conventional routes, enabling your request to be processed quickly and efficiently.

Could your business benefit?

Whether you’re at still an early stage in your development or firmly established, going down the Alternative Finance route could offer you a wide range of benefits. However, with so many different products to choose from, knowing which way to turn can become an obstacle in itself, especially if you’re going it alone. After all, if you’re not sure about how each product works, how can you be certain you’re looking at the most appropriate solutions? Applying for an agreement that’s unsuitable for your business can lead to your application being rejected or even your business paying more than it needs to. This is why speaking with a qualified business professional beforehand is so vital. So, if you’re looking for external funding or need help seeing an essential project to fruition, apply for Alternative Finance today or find out more with Rangewell.


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David Harrison

David Harrison

Content writer