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 finance 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 alternative 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 alternative lending.
How can other Alternative Funding help your Business?
Merchant cash advances are an alternative 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 alternative 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
Alternative Business Finance funders 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.
Contact Us Today
If you would like to discuss your businesses financial requirements in a view to using alternative business finance. The process to get started is simple, complete the online inquiry form and a business lending specialist will contact you.