Alternative business finance is any type of business finance that doesn’t come from a mainstream provider like a high street bank. High Street business working capital is great for many businesses, however, the banks often have a criteria which smaller businesses (SME’s) cannot fulfill, so small and medium-sized business needs other funding options.
The UK’s “alternative finance” industry has grown by 43% over the last year to £4.6 billion, according to a new report from the University of Cambridge. The growth across in the United Kingdom over the last decade spurred by a range of new online platforms such as peer-to-peer lenders Funding Circle and Invoice Funding, and crowdfunding services like Crowdcube and Seedrs. These startups form part of Britain’s booming fintech industry.
What is Alternative Business Finance?
In the past, alternative business finance providers were hard to find and might have had a specific product or sector they specialised in. There’s a huge variety of alternative business finance lenders and dozens of products available.
If your chosen way of taking payment from customers is via a card payment terminals, merchant cash advances could provide many benefits to your venture. Merchant cash advances offer a cash based lump sum based on the business monthly card sales. The amount offered up front is generally up to a month’s revenue. This straightforward modern way of borrowing is a good fit for small and medium sized businesses that take a high number of low-value transactions. example : Public House, Coffee Houses, Florists, Gyms and Retail businesses. To make repayments on the loan product are taken at source. This is simple and hands-off way to pay the business funding off for busy company owners.
The majority of retail companies use some sort of card payment terminals, making up for a large percentage of sales. Credit and Debit card payments can be tracked and analysed easily by yourself and the advance provider. This is one of the main advantages to using a merchant cash advance as an option for funding.
How can other Alternative Funding help your Business?
Merchant cash advance loans are a none traditional funding solution that offers an unsecured advance of cash based on the businesses future card sales. Cash advance lenders works with the merchant card machine provider. example : Worldpay or Barclaycard which processes all the businesses merchant card transactions. Due to working closely with the merchant provider the lender can analyse your recent sales. This funding method is great for businesses that do not have assets or want to offer a personal guarantee. The business cash advance can be up and running within 48 hours. Ones this has taken place the lump sum will be in your business account within 5 working days.
Due to businesses using electronic payment methods this ensures the provider and user review sales data in a clear and concise fashion. This ensures the lender can get a transparent view of the number of transactions per month. One of the great reasons a merchant cash loan if perfect for business growth is down to the transparency of the product. Businesses no longer need to submit trading accounts, cash flow projections. As no credit checks are required this product is simple to implement for any business that uses card machine.
How much Funding can our Business Gain
Business Finance lenders can offer you anywhere between £5,000 to £200,000. The unsecured business funding can help boost helping boost your business growth. PDQ Funding have supported businesses in different industrial sectors with a cash advance. An example of different industries we have supported are : merchant cash advance for tattoo studios . This type of business needed the advance to carry them across a seasonal down turn.
When it comes to repayment, we’ll agree a fixed percentage of your future credit or debit card sales with you, meaning you only pay back when your business earns. There’s no APR or fixed payments, just one simple cost. If your business slows down for whatever reason, your payments will also slow down. This is ideal if you’re running a seasonal business, as there’s no need to worry about struggling to keep up with repayments. Likewise if your business is booming, you’ll repay the business cash advance quicker.
Why choose alternative financing?
This type of financing options for your business have many benefits when compared with their more traditional counterparts. The fact that they often don’t take into account a applicants credit score, or how long they’ve been in business, makes them far more accessible to customers than a regular high street bank loan.
The funding options you have at your disposal today are practically endless and can differ to your tastes depending on the timing and what state your business is currently in. So, stop worrying about your assets, as you won’t have to use them for collateral, and you won’t have to wait for months on end for a bank to approve your loan application.
Alternative Business Funding in the UK
Quick turnaround rates in about 48 hours it is a preferred funding option to 65% of merchant business owners across the United Kingdom. Partnering with PDQ Funding one of the UK’s leading Cash Advance company you are safe in the knowledge we have your interests at heart.
Many business owners deem traditional bank loans as ‘one-dimensional’ and out of touch with the small business and SME’s. With a conventional bank loan, there are standard requirements such as business plans, forecasts, personal security guarantees and a never-ending amount of application paperwork.
As the high street banks continue to cut back on the availability of business finance, none traditional funding providers have stepped in to offer a wide variety of different products that are aligned with modern businesses. Working capital can be used to invest in new premises, refurbish an existing property, increase stock or assist with cash flow.
Different methods of alternative business finance
There are many different ways of acquiring finance for your business, but choosing the right method for your company/venture is absolutely key for success. Take the time to consider the variety of options you have available to you and make your decision afterwards. Taking the wrong option can sometimes backfire and you’ll want to give your business the best opportunity to achieve growth.
Short-term loans work just like longer ones, with the exception of your rate. Instead of an interest rate, you’ll likely be quoted with a ‘factor rate’ so you’ll need to calculate that cost in order to translate the APR. A short-term loan is a good alternative business finance option for businesses that need funding right away. This is because you’ll typically receive your funding within a few days and be able to make the purchases your business needs to succeed very quickly.
This is a good option for people that either have a slow cash flow or customers that seem to often pay their invoices late. Invoice financing is basically where lenders will offer you anything from 50% to 90% of your outstanding invoices as a loan repayment, which is recouped when your invoices are paid. In most cases you will only be charged a flat rate for the advance on this type of financing with only one percent added for each week the loan remains outstanding.
Merchant cash advance
A merchant cash advance is all about your business’ credit card sales. In this case the lender will advance funds to you, which will in turn be paid back as you make daily credit card sales. A previously agreed percentage of your sales is paid back to your lender, meaning you’ll only begin to pay back your loan as you make money yourself. This can be a useful way of avoiding any nasty surprises other options can spring upon you; if your business is having a slow sales week, you won’t be paying as much back to your lender.
Your business will likely have to be at least a year old to secure this kind of funding, but your credit score will not be taken into account in most cases. This makes the merchant cash advance a popular option among people that have had a more difficult time with their past credit ratings.
- Only pay back on future credit and debit card sales
- Works in line with your cashflow
- Unsecured cash injection (no assets required)
- No fixed monthly terms
- No business plan required
- High approval rates 90 – 95% acceptance
- Less paperwork and hassle
- Works with your existing PDQ Machine provider
- Cash Advance of £5,000 to £200,000
- Same day decision and funding within 48 hours
- Your cash sales are safe, only card payments are used to repay
My personal credit file has bad credit, will I still be accepted?
There are no guarantees, however due to the flexibility of this loan, CCJ’s and adverse credit can be considered, and many past cases have been approved with bad credit in place. There is an 90 – 95% acceptance rate on this product. Alternative types of business funding like cash advances for business do not do credit checks. Business Cash Loan With No Credit Check is a perfect fit for anyone who is worried about their credit score and the chances of being accepted for alternative business funding.
Does this type of company finance work with a poor credit history or bad business credit score – Depending on the circumstances and type of finance arrangement offered, businesses with no or poor credit histories could be considered for alternative business funding. So, if your business has received a CCJ or missed repayments in the past, it is worth applying for this type of alternative finance to see whether you qualify.
Alternative Business Finance, what is it?
Alternative business finance offers a wide range of innovative funding products for the business sector. This type of funding is designed and structured differently to traditional business finance products usually associated with high street banks.
Different types of alternative business finance?
Many businesses do not have assets so immediately do not qualify for secured finance. Security is not the end of the story, however. You can still access an array of funding options for your business that don’t require security. - Unsecured business loan - Merchant cash advance - Asset finance - Invoice finance - Crowdfunding for business - Peer-to-Peer lending (P2P) - Angel Investor
Does Your Business Qualify for Alternative business funding?
To qualify for alternative business funding, you must operate a UK-registered business. Your company can be at any stage of the business lifecycle, from start-up businesses to a growing SME. It can also be any legal type of business from sole traders, limited businesses, LLP's and Partnerships.
Contact Us Today
If you would like to discuss your businesses financial requirements in a view to using none traditional business finance. The process to get started is simple, complete the online inquiry form and a business lending specialist will contact you
Should you wish to discuss different funding options available to your business, the process is so simple. Right now in 2020 alternative business finance is booming, in particular merchant cash advance UK. Entrepreneurs who tap into these valuable services are seeing growth within their businesses. Having access to quick finance without the administration many high street banks impose. This means many small businesses are able to continue to grow without the stress of trying to find finance.
- Complete the online enquiry form.
- Once it is received a cash flow development expert will make contact with you.
- You can discuss the product and they will answer any questions you may have.
- Hopefully if everything if everything goes to plan, you will have your funds in the business bank account within 48hours.