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Business finance has moved on. Have you?

08/02/2018 / Comments 0

Business finance has moved on. Have you?

In recent years the funding market has grown rapidly and the benefits of alternative finance for growing businesses have become increasingly apparent.

Yet, many business owners are still reluctant to apply for alternative finance options.

With plenty of success stories and proactive marketing, alternative finance has propelled itself to become a mainstream option for business funding.

With various solutions to choose from, such as asset finance, invoice finance and crowdfunding, there is something available to help businesses meet a host of different specific requirements.

These forms of funding are often easier to secure than more traditional methods. They can also be more flexible, which is good for the fluctuating cash flows of growing businesses.

But, according to research from recruitment company Tindall Perry, eight in 10 SMEs still prefer traditional bank loans over alternative finance.

Only a quarter of respondents said they were comfortable with accessing crowdfunding or peer-to-peer lending.

Invoice finance, trade finance and venture capital all saw more positive response rates of between 55% and 75%.


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But, traditional bank lending remained the funding of choice for financial directors, with 83% suggesting that they would approach their bank for finance in the first instance.

Whilst it’s not surprising that SMEs still turn to their bank, this could mean that SMEs aren’t gaining the full picture of what is available out there for them and subsequently could end up tied into a funding facility that doesn’t meet the specific needs of their business.

Talking to a bank manager often means you will only be made aware of the options that the bank can offer you. Yet, with a dramatic rise in the number of lenders and products on the market, there are many more options available to you.

An independent commercial finance broker, on the other hand, will objectively assess the finance market and concentrate on sourcing the best deal for you and your needs.

This expert knowledge could either identify opportunities that your bank does not offer, or find a more competitive facility elsewhere.

With the funding landscape constantly evolving it’s more important than ever for businesses to recognise the options available and have an open mind when it comes to securing a new facility.

Trying something new can seem daunting at first, but if it allows your business to reach its potential it could be the best move your company has ever made.

Here are five ‘alternative’ ways to fund your business and some of their benefits.

Invoice finance

Invoice finance allows you to access cash tied up in your sales ledger, often a company’s biggest asset, within 24 hours of issuing invoices.

Asset finance

Asset finance allows businesses to purchase new plant, machinery and equipment whilst protecting their cash flow. Whilst hire purchase, finance leases and operating leases provide a means to purchase new equipment without tying up working capital, asset refinance can release cash against the value of existing business assets. 

Crowdfunding

Crowdfunding is a great option for start-ups and early stage businesses. You “pitch” your idea or business to potential investors and, if interested, they will contribute money. Then you decide how you want to reward those who helped you make it happen.

Peer-to-peer lending

Peer-to-peer lending gives businesses the opportunity to raise funding from private investors, without the bank acting as the middle man.  

Trade finance

Trade finance solutions provide both exporters and importers with financial support and guidance to help make the process as straightforward as possible, keeping cash flowing and providing security to safeguard your business.


Want to know more?

If you‘d like to explore whether or not there’s a better solution on the market for your current needs contact our team today on 0800 9774833 or info@hiltonbaird.co.uk 

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Some of the funders we work with

  • Ultimate Finance Group
  • Aldermore Invoice Finance
  • Catalyst Finance
  • Bibby Financial Services
  • Santander Corporate & Commercial
  • Everline
  • Platform Black
  • ABN AMRO Commercial Finance
  • Innovation Finance
  • Trade Finance Partners
  • Woodsford Tradebridge
  • Ashley Commercial Finance
  • Partnership Invoice Finance
  • GapCap Cashflow Finance
  • Calverton Finance
  • Team Factors
  • Davenham Trade Finance
  • IGF Invoice Finance
  • Secure Trust Bank
  • Investec
  • Lloyds Bank Commercial Finance
  • Barclays
  • PNC Business Credit
  • Skipton Business Finance
  • Close Brothers Invoice Finance
  • Shawbrook Business Credit
  • Davenham Asset Finance
  • Leumi ABL
  • Metro Bank SME Finance
  • Creative Capital
  • Nucleus Commercial Finance
  • 1pm
  • Spotcap
  • Royal Bank of Scotland
  • InvoCap
  • Positive Cashflow Finance
  • Market Invoice
  • Working Capital Partners
  • Outsauce
  • iwoca
  • Assetz Capital
  • Asset Advantage
  • Henry Howard Cashflow Finance
  • Pulse Cashflow Finance
  • Regency Factors
  • Roma Finance

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