Alternative Finance Options for Small to Medium-Sized Businesses

A few years ago, high street banks were often the only option for many small and medium-sized enterprises (SMEs) looking to secure extra funds for their business. However, times have changed, and the use of alternatives to traditional finance continues to rise amongst SMEs.

Research by the British Business Bank, detailed in the ‘Small Business Finance Markets 2019 Report’, found that smaller businesses are increasingly using finance outside of traditional bank lending. The report highlights a diversifying market, with a growing number of flexible options for businesses to secure working capital funding or finance to aid business growth.

Time is money

It can be a complex process for start-up ventures and SMEs to qualify for traditional bank loans. Often smaller businesses don’t own substantial assets that can act as security against borrowings, or benefit from a well-established relationship with the lender. As a result, the bank may request personal guarantees from SME owners and can charge higher interest rates than those offered to larger businesses.

Another key factor is time, and the process in securing a bank loan can be lengthy. SMEs can gain a competitive advantage against larger organisations due to their ability to adapt quickly to changing customer needs or market forces. Therefore, SMEs need flexible and swift funding options to suit their business model, which can be achieved with a more forward-thinking approach.

Wide range of alternatives

At Ideal4Finance we specialise in providing a number of both secured and unsecured commercial finance options, tailored to suit our clients’ needs. For example, have you considered a short-term secured business loan of up to £500,000, or an overdraft alternative which allows you to draw down or pay back within pre-approved limits?

Alternatively, if you need to boost your cash flow you may prefer to raise funds based upon your existing sales, via a merchant cash advance or invoice finance.

For SMEs looking to purchase new equipment or vehicles, an asset finance option may be the ideal solution. Or for those with poor or no credit rating, a personal asset loan could provide a vital cash injection for your business.

During recent years, crowdfunding has grown in popularity, especially with start-up ventures. This modern approach connects lenders and investors with SMEs seeking finance, usually at a lower rate than traditional methods.

Funding to suit your business

Currently there are numerous finance and lending products available, however the vast array of choice can be quite daunting and time consuming. So, how do you choose the best finance option for you?

Our friendly and professional team at Ideal4Finance will discuss your individual requirements, find the best competitive and affordable deals, and guide you through the simple application process.

Contact us on 01772 963846 or via email at to discover the wide range of flexible finance options for your business.

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