Small business finance is changing with the times. No longer are business customers stuck with their local high street bank for a very large mixed offering. No, in fact small business owners and finance directors have rather more choice than ever before. Why? The very reason for the rise of the alternative business finance market was down to the very limited offerings from the high street banks.
So what is alternative business finance?
Innovation born through demand. Small business owners needed short term business loans without lengthy processes, without the need for over complicated business plans, lengthy meetings, having to put up security such as a personal or business asset. The fact that the high street banks demand such lengthy processes and long waits for business owners to access the cash they require quickly lead the way for the growth of the alternative finance market.
Such alternative lending products which became available have been truly life saving for small businesses. Products such as invoice finance where a large percentage of funds are released based on raising an invoice to your customer. This type of invoice finance has helped thousands of businesses keep trading efficiently and has helped with immediate cash flow issues.
Crowdfunding platforms have also been a resource for businesses especially startups or businesses launching a new product or service. These platforms offer your project out to a marketplace of investors who all invest an amount until a target is reached. They benefit in a number of ways depending on which platform they are using.
Business cash advance loans are great for businesses who use card terminals and process credit and debit card sales from their customers. This type of loan works for many businesses who have the consumer as their customer (b2c) rather than many businesses who trade with our businesses (b2b). These loans are unsecured and work inline with your cashflow. Many businesses in the hospitality and retail sector qualify on a daily basis.
It’s a very positive space for many businesses to look for finance. New non-bank finders are now in the market eager to help small businesses and the list of these founders are growing rapidly.