Whether you are a small or medium business owner, you have a lot to worry about. Alternative small business loans shouldn’t be one of them. But like so many other entrepreneurs out there, sourcing alternative business loans can feel daunting. To help you understand the lay of the lend, here is what you need to know when it comes to alternative business finance:
What Is ‘Alternative Business Funding ’?
Simply put, ‘alternative business funding’ is a broad term that refers to non-banking (often simpler) financial services that fill the gaps in the traditional funding sector. Don’t be discouraged by all the variations out there. Armed with knowledge, there are plenty of credible alternative business financing options that can super-charge your business, at the time when you need it most.
What options are there for alternative business loans?
Short-Term Business Loans
This alternative financing for small business directly aligns with your business’s turnover. It is ideal for boosting young businesses with quick turn-around times and flexibility in how the borrowed money can be used. With short-term business loans, there is less importance placed on credit rating and more emphasis on the business’s trading history. It is most suitable for businesses looking to take advantage of an exciting opportunity or wanting a quick stopgap of working capital.
Unsecured Business Loans
Unsecured business loans boast similar benefits and processing to small business loans, but without restrictions on age or turnover. Here, alternative lending companies give precedence to the applicant’s credit rating. This often results in preference given to those with a solid financial history. Unsecured business loans are best suited to businesses looking for cash to grow and develop, but who do not want to part with equity. But there are risks. Namely, putting up personal assets for a business venture. Most business owners would seek alternatives before parting with a piece of their personal pie.
Asset Finance
Asset finance is another solid option when it comes to alternative business loans. It is well suited to sizable investments that are necessary for future sustainability but are not immediately affordable to a business. This can be anything from investing in high-value kitchen equipment in a restaurant, to panel beating machinery in an automotive repair shop. The finance terms are calculated on the value of the desired asset and the duration of repayment, making this solution suitable for businesses that want to split the cost of an asset into a more manageable repayment plan.
Our revolving credit facility offers business finance solutions that will close the gap between your business’s success and your cash flow needs. You’ll be given control of a revolving line of credit that’s readily available to use if and when your business requires financial support. It’s easy to apply for, easy to access, and even easier to repay. Our business loan equips companies with a revolving line of credit that ensures they achieve their business goals.