The short term business loans sector has seen incredible growth over the last three years with more and more business lenders entering the alternative business finance space.
Subsequently, SME’s and small businesses including startup’s have new access to funding lines including unsecured finance solutions from innovative business lending.
If your business is requires funding and you have already approached your high street bank (if it’s still there) you will know that the process of obtaining a business loan is far from simple. In fact unsecured short term business loans from the big five are almost a thing of the past.
In their place new blood, faster processing, less paperwork, no APR’s, same day business funding, peer to peer lending, business cash advance, asset finance, invoice finance, pension funding to name just a few.
The access via the web has made getting a quote for such funding easier. No lengthy business plans, no lengthy paperwork, no awkward meetings to attend just straightforward algorithm style lending.
At one time the relationship with your local bank manager went a long way, he or she knew you and knew your business. Some still claim to use the human aspect as a component as part of the application process but this simply isn’t true. It still boils down to facts and figures across the board. The significant difference however is that the high street banks cannot compete with the innovative ways that the alternative lenders operate.
Online Short Term Business Loans – the growth
Access to short term business loans has become accessible to the masses increased by the marketing drive from government via The British Business Bank who have helped sink finance into UK businesses.
The government also stepped in last year to pressure the high street banks to refer their business customers who are declined by them to such lenders. Making the process mandatory has had a major boost for small business and growing SME’s in their quest to find the finance to grow.
Since 2010 the short term business loans alternative finance sector now does over £3.2 billion of business a year, up 84% on 2015. The UK is now the envy of many other countries all desperate to follow in it’s footsteps. So over the coming years finding short term business loans will become easier with alternative business finance becoming mainstream.
1.09 million ordinary people have invested their own funds into alternative business finance so far and the numbers are growing. 255,000 individuals, projects and not-for profit businesses raised finance via online alternative finance companies.
We at MLA offer such a product – a business cash advance fits into the category of alternative finance. Put simply it’s an unsecured business advance based on your businesses credit and debit card sales. Customers are advanced a loan which repays via a percentage of all future card sales until the loan is repaid. The great part about this type of funding is that it fits into the category of short term business loans and it’s unsecured. It also works with your cashflow, when business is low for the month then the repayments are low and if your business has a good month then the loan is repaid sooner. To find out more and get a free no obligation quote apply here.