Alternative Funding

What are the key alternatives to traditional Bank Funding?

Bank Funding may not be suitable for all businesses, however innovative funding solutions are now available.

Angel Loans - These are loans provided by a collection of individuals through an aggregation website.  Currently these loans are up to £100k, although this limit may increase in the future.

Invoice Finance - Funding for a single large invoice is available through a new provider.  For example a large Sale to a good quality customer, maybe on extended terms, can be turned into cash through the pledge of the Invoice as security.  

Debtor Funding - This funding is available on a 'Confidential basis' (ie. it will not be obvious to your customers), for up to 85% of the Value of your Debtors, providing you have quality customers.

Sale & Leaseback - If your business has Assets which have not been purchased on Hire Purchase or Leasing, then providing the Assets have good resale value, a Sale to a leasing company may support a term loan or lease, so releasing cash.

Mezzanine Loans - These are loans which sit between traditional Bank finance and Equity Finance.  Typically mezzanine loans are not secured but do charge a higher rate of interest.

Equity Finance - Finance in exchange for a part share in the ownership of the business is available - see Business Angel Finance

See our newsletter on 'Where to Hunt for Funding?'

vfdnet part time Finance Directors have extensive experience of arranging alternative business finance.  Why not Contact us for a no obligation free discussion on how we can help you.

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