Benefits of VC Funding AlternativesPublished on 17th May 2018 2018-05-17T22:42:24+00:00 - Last update on 5th November 2018 2018-11-05T09:24:31+00:00
As a startup or developing SME business, raising the funds you need to grow and pursue your goals can be tough. Yet, in spite of this, it’s also essential. One way of raising the funds you need to succeed could be gathered through individual or corporate investors in the form of Venture Capital. However, this means offering up shares and potentially losing some control over your business. But if you’re looking for another way to achieve your goals, you could instead explore what VC Funding Alternatives are available. Describing a wide range of business finance products, VC Funding Alternatives can also be used to support any aspect of your business. So if you’re looking to increase investment, some of the ways your business could benefit from sourcing an appropriate VC Funding Alternative include:
- Gaining access to a range of business finance solutions
- Suitable for a variety of purposes
- Flexible criteria
- The ability to retain equity in your business
What VC Funding Alternatives could I apply for?
One reason to consider your VC Funding Alternatives is due to the wide range of business finance products available. By deciding to take this route your business could gain access to finance solutions such as Business Loans, Mezzanine Finance, Merchant Cash Advance, Commercial Mortgages, Asset Finance to Invoice Finance. But in order to receive the full range of benefits that are on offer, make sure that you thoroughly understand how each product works before applying.
Need help supporting your business’ development? Don’t want to lose equity in your business to individual or corporate investors? Apply for a VC Funding Alternative or learn more about how your business could benefit.
What can I use VC Funding Alternatives for?
VC Funding Alternatives can be used to benefit any area or aspect of your business. This is because many of the business finance solutions that are available possess no usage restrictions. So regardless of whether you’re looking to obtain more equipment, expand into new locations, pay for marketing, carry out refurbishments, restructure your business, support uneven cashflow or gain a cash injection, applying for a VC Funding Alternative could offer the means in which to achieve your long- and short-term goals.
What does my business need to qualify for VC Funding Alternatives?
In addition, because of the array of VC Funding Alternative, this pathway is open to a range of different financial situations. Although some products may require you to offer security in the form of unencumbered assets (equipment, machinery or property), other finance solutions may not. Plus, even if your business has adverse credit, it may not always be used against you since some products and lenders may prefer to look at your past income, the equity contained inside your unencumbered assets or the money owed to you in unpaid invoices. So no matter how many assets you own, how developed you may be or whether you have adverse credit, your business could still qualify for a VC Funding Alternative.
What do lenders gain from their investment?
What makes VC Funding Alternatives so useful for many UK businesses is that they don’t require you to release shares in your business to individual or corporate investors. But in exchange for any potential funding, lenders will expect to see a return on their investment. Therefore, you’ll be required to gradually repay lenders over an agreed term plus interest. The most common repayment method is Fixed Monthly Repayments. However, other products can be repaid using Flexible Monthly Repayments, Deferred Payments or the money owed to you in unpaid invoices. Therefore, even though VC Funding Alternatives can cost you more than using your own funds, in the long run, it doesn’t place nearly as much pressure upon your finances and won’t require you to surrender shares in your business.
Could your business benefit from a VC Funding Alternative?
Regardless of where your business may be in its development, making sure that you have access to sufficient capital is essential. Although approaching third-party investors may be tempting, this ultimately means offering up shares and weakening your control over your business. But if you’ve got a clear vision and the will to see it into fruition, you could apply for a VC Funding Alternative instead. However, with so many products and lenders to choose from, how can you be sure that you’re getting an appropriate finance for your business at a competitive rate? Thankfully, we’ve already done the hard work for you. So if you’re in need of new equipment, cash flow support or are thinking about moving into another premises, apply for a CV Funding Alternative today or find out more with Rangewell.
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