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Benefits of Crowdfunding Alternatives

Published on 12th March 2019

For many start-ups and SMEs, Investment Crowdfunding and Loan-Based Crowdfunding can offer a great way of kick-starting your business’ development. But as you continue to grow and gain a more tangible presence in your chosen sector, the array of funding opportunities available to your business may well have expanded. As such, the chances are that more beneficial financial alternatives might be available to you. By choosing to explore the diverse range of Crowdfunding Alternatives for your business, you could acquire the funds, tools, and resources necessary to achieve your short- and long-term goals. So if you’re looking to move forward and seek opportunities beyond crowdfunding, here are just some of the benefits your business could receive from applying for Crowdfunding Alternatives.

  • Access to a range of business finance solutions
  • Suitable for a variety of purposes
  • Access to a lump sum
  • Flexible criteria

What Crowdfunding Alternatives could my business apply for?

By exploring Crowdfunding Alternatives, your business could qualify for a wide range of finance products, all of which work in different ways to help support your goals. So whilst you may believe that, as an SME business, the number of funding opportunities available to you may be limited, some of the many products you could apply for can range from Secured and Unsecured Business Loans to Merchant Cash Advance and Invoice Financing. But in order to make a fully informed decision that benefits that whole of your business, you must ensure that you have a strong grasp of how each of these products operates before entering any financial commitments.

Unsure whether raising sufficient funds from external investors is right for your business? 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?

Because many of the financial products on offer don’t impose any usage restrictions, there’s no limit to the number of ways Crowdfunding Alternatives could be used in and around your business. So whether you’re looking to acquire new equipment, replenish your stock, smooth out uneven cash flow or move into your first premises, exploring the alternatives to crowdfunding could offer you the funds, tools, and resources necessary to help you reach your goals. Therefore, applying for a crowdfunding alternative could offer you the same great benefit as crowdfunding - in terms of usage - without the need to offer shares in your business or disclose sensitive information to 3rd party investors online.

How much funding could my business receive through applying for a Crowdfunding Alternative?

The amount of funding that your business could borrow or have advanced varies between products, so it depends on which type of finance you choose to apply for and how funds are calculated. That said, whilst some products impose a limit on what you can acquire, other finance solutions may carry no maximum credit limits other than what the concerned lender is willing or able to provide. So whilst crowdfunding offers funding based entirely upon how much confidence 3rd party investors hold in your business, you could still receive a large amount of funding using either your past income, unpaid invoices, unencumbered assets or how well your business is performing.

What does my business require to be eligible for a Crowdfunding Alternative?

Another factor which makes exploring your Crowdfunding Alternatives so worthwhile is the number of financial situations that are supported. So whilst some products require you to offer security for an agreement in the form of equipment, machinery or vehicles, other finance solutions may not. Plus, even though possessing a weak credit score can cut you off from some funding opportunities, there are also products available that prefer to assess other aspects of your business such as past income or unencumbered assets. However, it’s worth noting that the strength of your credit score can affect the interest rate you’re offered. In addition, some of the documents you may need to provide can range from bank statements, sales reports, annual turnover, invoices, appraisal reports, tax returns, profit and loss statements to the Standard Industrial Classification (SIC) code for your sector. So no matter where you stand, you could still receive the confidence and support to pursue and achieve a brighter sustainable future for your business.

Thinking about applying for an alternative to crowdfunding?

Although ensuring a strong rate of growth is crucial for running a successful business, and crowdfunding can be a useful way of scaling up and maintaining that strong growth rate, you may eventually become too big for crowdfunding. As such, you’ll need to explore other ways of providing your business with the funds it requires. However, thanks to the Alternative Finance industry, the array of funding opportunities available to your business has never been so diverse. So whether you’re looking to expand into new areas, bring in new equipment or provide support for your working capital, apply for a Crowdfunding Alternative today or find out more with Rangewell.


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David Harrison

David Harrison

Content writer