Traditionally if you are wanting a loan to grow, develop or finance your business you would go to a bank but now there are a wide range of other financial providers that can offer funding.
There is also a variety of funding options available to businesses which include loans, invoice finance, asset-backed loans, hire purchasing and leasing solutions. There are so many providers available that we have reviewed what each of them can offer below.
The table below gives a quick comparison of the top UK providers for alternative small business loan providers.
Company | Minimum loan amount | Maximum loan amount |
---|---|---|
Iwoca | £1,000 | £200,000 |
Funding Circle | £10,000 | £100,000 |
Ferratum | £2,000 | £50,000 |
Aspire Business Loans | £5,000 | £300,000 |
Fair Finance | £10,000 | £30,000 |
ABN AMRO | Not stated | £1.2 million |
Advantedge | Not stated | £1.5 million |
Aldermore | Not stated | Not stated |
Bibby Financial Services | Not stated | Not stated |
Calverton Finance | Not stated | £250,000 |
Capital on Tap | Not stated | £250,000 |
Zempler Bank (formerly Cashplus) | Not stated | £300,000 |
Catalyst Finance | Not stated | £1 million |
ClearFunder | £10,000 | £100,000 |
Close Brothers | Not stated | Not stated |
Cubefunder | £5,000 | £100,000 |
Fleximize | £5,000 | £500,000 |
IGF | Not stated | Not stated |
Innovation Finance | Not stated | Not stated |
Market Invoice | Not stated | £100,000 |
Nucleus Commercial Finance | Not stated | £20 million |
Outsauce Financing | Not stated | Not stated |
Paragon Bank | Not stated | £25 million |
Peak Cashflow | Not stated | Not stated |
Positive Cashflow Finance | £10,000 | £1 million |
Pulse Cashflow | Not stated | Not stated |
rebuildingsociety com | £25,000 | Not stated |
Sancus | £250,000 | No limit |
Satago | Not stated | Not stated |
Spotcap | Not stated | £250,000 |
Start Up Loans | Not stated | £25,000 |
Team Factors | Not stated | Not stated |
Ultimate Finance | £,7500 | £5 million |
CrowdProperty | Not stated | Not stated |
Crowdstacker | £1 million | £50 million |
Folk 2 Folk | £50,000 | £5 million+ |
Landbay | £50,000 | £1.5 million |
ThinCats | £250,000 | £15 million |
LendingCrowd | £5,000 | £500,000 |
Huddle Capital | Not stated | Not stated |
ArchOver | £100,000 | £15 million |
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another.
Topics
Featured: iwoca*
Some of the features and benefits of iwoca’s alternative small business loans.
- Fast and fair loans
- Loans from £1,000 to £200,000
- Repayment terms up to 12 months
- Available for cash flow, stock and investments
- Apply in minutes
- Funding can be received within hours
- Flexible loan
- Borrow up to the equivalent of one month’s revenue
- Suitable for business start-ups
- Highly rated on Trustpilot
iwoca is a European small business loan provider that has dedicated its business to helping small businesses to grow through offering fast and fair business loans which can be used to increase cash flow, buy stock or to invest in the business.
iwoca’s business loans are available for amounts between £1,000 and £200,000 but they tend to be limited to one month’s revenue or £10,000 if your business is a start-up. You can borrow the money for up to 12 months, but you can repay the loan early to reduce the amount of interest payable. They also allow you to top up your loan subject to your credit limit.
2. Funding Circle
Some of the features and benefits of Funding Circle’s alternative small business loan.
- Unsecured loans
- Rates from 1.9% per year
- Loans from £10,000 to £500,000
- Terms from 6 months to 5 years
- Decision as soon as 5 hours
- No fees for early repayment
- Designed for businesses of all sizes
- Available for a variety of reasons including business expansion
- Apply using their simple online form
- Dedicated account manager
Funding Circle is an alternative financial provider that brings together investors and lenders to help businesses grow and give investors good returns. They also use funding from the government-owned British Business Bank to lend money to small UK businesses.
Funding Circle’s business loans are available to a wide variety of businesses of all sizes and for most loan reasons. They offer loans from £10,000 to £500,000 on terms from 6 months to 5 years on rates starting from 1.9% per year. You can apply online for a loan and get a decision in as little as 5 hours and you will receive support from a dedicated account manager.
3. Capital on Tap
Some of the features and benefits of Capital on Tap’s alternative small business loan.
- Short-term business loans on credit cards
- Loans up to £250,000
- Flexible repayment options
- No monthly/annual fees
- Top up your loan
- Repay early at no cost
- Only pay interest for the days you have the funds
- Online account management
- Can have multiple cards
- Suitable for businesses and sole traders
Capital on Tap is a different way of accessing business funding as they offer a credit card style of business loan for up to £250,000. You can use their card to draw down funds as you need them or transfer the funding to your bank account.
Capital on Tap’s business loan charges you interest only on the days that you owe money and it has no annual/monthly fees. You can top up your loan or repay your loan at any point. You have complete control and can manage it online. You can split the loan over several cards so that you, your employees or business partners can all use the card.
4. Ferratum
Some of the features and benefits of Ferratum’s alternative small business loan.
- Fast and easy business loans
- Loans from £2,000 to £50,000
- No collateral needed
- Simple and quick application process
- Fixed monthly payments
- Funding receive within one business day
- Transparent loan terms
- No hidden costs
- Available to businesses that have been operating for over 12 months
- Highly rated on trust pilot
Ferratum is an international financial provider that operates in Europe with offices in Liverpool. Part of a larger group, Ferratum Business was set up to provide working capital loans to small businesses.
Ferratum’s business loans are designed to be fast and easy as they offer a simple and quick online application process with no additional paperwork. They offer loans to UK businesses that have been trading for over 12 months with a turnover above £75,000. Their loans are available for amounts from £2,000 to £50,000. They offer transparent loan terms and no hidden fees and funding can be received within one working day of your application being approved.
5. Aspire Business Loans
Some of the features and benefits of Aspire Business Loans’ alternative small business loan.
- Quick and simple business loans
- Loans from £5,000 to £300,000
- Repayment terms from 1 to 5 years
- Choice of secure and unsecured loans
- Pay as you trade finance
- Invoice Financing
- Debt refinancing
- Same day decisions
- Available to UK businesses
- Must have been trading for at least 1 year
Aspire Business Loans are part of Aspire Money Limited and they offer a wide variety of business financial products. Their finance products include secure loans, unsecured loans, pay as you trade loans, invoice financing and debt refinancing.
Aspire Business Loans offers a range of funding solutions that cater for a variety of business needs and circumstances and they provide a choice of funding options tailored to your needs. Their business loans are available for amounts from £5,000 to £300,000 for periods from 1 to 5 years. To be eligible your business needs to be registered in the UK and have a UK bank account with over one year’s history.
6. Fair Finance
Some of the features and benefits of Fair Finance’s alternative small business loan.
- Business loans designed for small businesses
- Quick and simple loans
- Loans from £10,000 to £30,000
- Repayment terms from 6 to 36 months
- Transparent terms and costs
- Decisions made by humans, not algorithms
- No early repayment charges
- Will consider those with adverse credit
- Suitable to a wide range of businesses
- Social based business who re-invests its profits
Fair Finance is a financial provider that is a social business who re-invest its profits into further loans to ensure that everyone gets a fair chance of receiving a loan. Their financial products range includes a variety of products that help businesses to grow and are inclusive as they consider all circumstances including those who adverse credit.
Fair Finance’s business loans are offered to a wide range of small businesses for a variety of circumstances. Their loans start at £10,000 and go up to £30,000 on terms from 6 months up to 36 months. They offer a personal service and evaluate the loan applications themselves not using algorisms.
7. ABN AMRO
Some of the features and benefits of ABN AMRO’s alternative small business loan.
- Offers a range of business finance
- Invoice factoring
- Invoice discounting
- Asset-based lending
- Enterprise Finance Guarantee Loan
- Bad debt protection
- Cross border finance
- Loans up to £1.2 million
- Provides a funding calculator to help decide which funding stream works best for you
- International provider of financial products
ABM AMRO Commercial Finance is one part of a Netherlands based global banking business who provides both private and commercial banking services. They offer a variety of business finance products which includes invoice factoring, invoice discounting, asset-based lending, Enterprise Finance Guarantee Loan and bad debt protection.
ABM AMRO’s range of products allows you to raise funding from a variety of sources including your unpaid invoices through invoice factoring and discounting; raise funding from your assets; and take out loans through the Enterprise Finance Guarantee Loan. The Enterprise Finance Guarantee Loan is a government-backed loan where they back 75% of the loan and you can raise up to £1.2 million.
8. Advantedge
Some of the features and benefits of Advantedge’s alternative small business loan.
- Choice of funding solutions
- Flexible solutions
- Free up cash flow from your sales ledger
- Invoice finance
- Invoice discounting
- Selective invoice finance
- Bad debt protection
- Designed for small to medium-sized businesses
- Dedicated account manager
- Independent invoice finance company
Advantedge is an independently run financial services business who offers a range of cash flow solutions that allows businesses to free up cash tied up in their sales ledger. Their product range includes invoice finance, invoice discounting, selective invoice finance and bad debt protection.
Advantedge’s funding products offer flexible solutions for small to medium-sized businesses. Invoice finance, invoice discounting and selective invoice finance allow businesses to release funding from their sales ledger with varying degrees of control of your credit management and the ability to select which invoices to factor. They also offer bad debt protection to give your business peace of mind that you are protected.
9. Aldermore
Some of the features and benefits of Aldermore’s alternative small business loan.
- Choice of business finance options
- Release funding from a variety of assets
- Asset finance
- Invoice finance
- Construction, trade and contract finance
- Cater for a variety of industries
- Can be used for a range of reasons
- Transparent process
- Clear repayment plan
- Dedicated business development manager and sales support
Aldermore is a financial services provider that is one of the leading alternative banks which offers a range of business funding solutions to small to medium-sized businesses. They provide solutions that release funding from sources where your cash flow is tied up including asset finance, invoice finance, construction finance, trade finance and contract finance.
Aldermore’s asset finance releases funding tied up in your assets, invoice finance releasing funds from unpaid invoices through either invoice factoring or discounting. Construction finance, trade finance and contract finance allow you to advance cash. They offer a transparent process and clear repayment plans that are supported by dedicated staff.
10. Bibby Financial Services
Some of the features and benefits of Bibby Financial Services’ alternative small business loan.
- Offer a range of funding options
- Invoice finance
- Asset finance
- Trade finance
- Construction finance
- Export finance
- Recruitment finance
- Lease, hire purchase and refinancing
- Forward finance
Bibby Financial Services is an established independent financial services provider offering a range of funding solutions to businesses. They offer invoice finance, asset finance, corporate funding, export finance, recruitment finance, trade finance, leasing, hire purchase and refinancing, forward finance, foreign exchange and bad debt protection.
Bibby Financial Services’ product range offers a variety of funding solutions to meet most needs. You can raise funding from your sales ledger and assets through invoice finance includes factoring and discounting, forward finance, asset-based lending and trade finance. Purchase new equipment through leasing, hire purchase and refinancing. You can also protect your business with foreign exchange and bad debt protection.
Bibby Financial Services website
11. Calverton Finance
Some of the features and benefits of Calverton Finance’s alternative small business loan.
- Improved cash flow solutions
- Credit control management
- Invoice factoring
- Management Buy-Out Financing
- Confidential invoice discounting
- Selective invoice finance
- Short-term finance solutions
- Specialist offerings for recruitment companies
- Media finance
- Bad debt protection
- Offers a 5-minute approval service
Calverton Finance is a financial services provider that offers a range of business funding solutions that can help businesses to release tied up cash flow. They help a variety of businesses in different sectors which include new start-up businesses, businesses wanting to grow, those wanting to restructure, business acquisitions and management buyouts.
Calverton Finance’s product range includes invoice finance products to release funding from unpaid invoices and their range includes invoice factoring, confidential invoice discounting and selective invoice finance. They offer short-term cash flow loans up to £250,000. They also offer speciality products for the recruitment industry and media industry which include finance and back office solutions.
12. ArchOver
Some of the features and benefits of ArchOver’s alternative small business loan.
- Flexible peer-to-peer lending solutions
- Range of secured and unsecured loans
- Fixed term loans
- Fixed rate loans
- Terms from 3 to 36 months
- Designed for established businesses
- They will listen and engage with your business
- No guarantees required
- No hidden fees
- No early repayment charges
ArchOver is a peer-to-peer business lending provider that connects businesses seeking finance and investors that want opportunities that are secure and offer favourable returns. They offer a personalised service where they listen and engage with businesses to understand them better.
ArchOver’s peer-to-peer loan service offers a range of secured and unsecured loans with fixed terms and fixed rates so that you know what your outgoings are. Their loans are designed for established UK businesses for amounts between £100,000 to £15 million for periods from 3 to 36 months. Their loans offer no hidden fees and no early repayments charges.
13. Zempler Bank (formerly Cashplus)
Some of the features and benefits of Cashplus’s alternative small business loan.
- Range of lending solutions
- Alternative solutions to business loans
- Available only to existing customers
- Merchant cash advance
- Business iDraft
- Debit Protect
- Lend up to £300,000
- Protection from unexpected expenses
- Flexible repayments
- Quick and easy application
Zempler Bank is a financial provider offering current accounts and lending solutions to businesses who bank with them. Existing customers can set up lending facilities which include business cash advance, iDraft and Debit Protect.
Zempler Bank’s business cash advance is an alternative loan that they offer in partnership with Liberis and you can borrow up to £300,000 which is paid back through your card sale payments. This is a flexible loan as you pay the loan back when your business is earning and therefore it is not a fixed amount. They also offer iDraft which is an overdraft facility up to £2,000 and Debit Protect which is protection against unexpected debts.
14. Catalyst Finance
Some of the features and benefits of Catalyst Finance’s alternative small business loan.
- Short-term finance provider
- Commercial business loans
- VAT and cash flow loans
- Selective invoice finance
- Asset secured loans
- Simple and transparent finance solutions
- Flexible products
- Funding up to £1 million
- Commercial loans over 3 to 12 months
- Available to a wide variety of businesses
Catalyst Finance is a specialist short-term business finance provider who offers a range of business funding solutions to a wide variety of business types and industries. Their product range includes commercial business loans, VAT and cash flow loans, selective invoice finance and asset secured loans.
Catalyst Finance’s commercial business loans are available to businesses that have been trading for more than two years for amounts from £25,000 to £1 million on terms from 3 to 12 months. Selective invoice financing allows you to free up cash flow from your sales ledger. Asset secured loans allow you to offer guarantees for loans against your sales ledger.
15. ClearFunder
Some of the features and benefits of ClearFunder’s alternative small business loan.
- Alternative business loan solutions
- Will consider all circumstances
- Cater for small to medium-sized businesses
- Flexible loans
- Competitive loan rates
- Borrow from £10,000 to £100,000
- Terms from 6 to 12 months
- Simple and quick loan process
- Get an instant online quote
- Available to a variety of businesses
ClearFunder is a finance provider that offers an alternative loan solution to traditional banks and will consider all circumstances including those with bad credit. Their loans are designed to meet the needs of small to medium-sized businesses in a variety of business sectors who require a loan for a range of reasons.
ClearFunder’s business loans offer loans from £10,000 to £100,000 over a period from 6 to 12 months on flexible terms and can provide affordable repayment amounts. They claim that they offer competitive rates on their loans which can be set up in a simple and quick way with dedicated support.
16. Close Brothers
Some of the features and benefits of Close Brothers’ alternative small business loan.
- Alternatives to traditional business loans
- Invoice discounting
- Invoice factoring
- Asset-based lending
- Bad debt protection
- Liquidity plus
- Improve cash flow
- Release funding to grow your business
- Access up to 90% of your invoice values
- Flexible solution
Close Brothers is a UK based finance company who are part of a larger merchant banking service. They offer a variety of finance solutions which include invoice finance and asset-based lending to a wide variety of businesses to help them increase cash flow or grow their business.
Close Brother’s invoice finance includes both invoice factoring and invoice discounting which allow businesses to access the funding that is tied up in unpaid invoices up to the value of 90% invoices. Asset-based lending allows businesses to release higher levels of funding by blending invoice finance with funds released against assets such as property, stock or machinery.
17. Cubefunder
Some of the features and benefits of Cubefunder’s alternative small business loan.
- Fast access to funding
- Designed for small businesses
- Flexible loans
- Loans from £5,000 to £100,000
- Tailored repayments
- No APR
- Simple application
- Dedicated support
- Can be used a wide range of reasons
- Available to a variety of sectors
Cubefunder is a business finance provider who specialises in finance for smaller businesses by offering flexible loans. They claim to work closely with businesses to tailor their loans to meet the needs of the business and create repayment plans that match your cash flow.
Cubefunder’s business loans are not the same as traditional loans as they have a one-off fixed fee with no APR. Their loans are available from £5,000 to £100,000 and can be used to fund a variety of loan needs from businesses a wide range of business sectors. They offer dedicated support through the application and loan period and will support you if your circumstances change.
18. Fleximize
Some of the features and benefits of Fleximize’s alternative small business loan.
- Loans designed for SMEs
- Choice of secured and unsecured loans
- Loans from £5,000 to £500,000
- Terms from 1 to 48 months
- Fast and flexible loans
- No hidden fees
- If you repay early, then you pay less
- Exclusive membership benefits
- Dedicated relationship manager
- Highly rated on Trustpilot
Fleximize is financial provider specialising in lending money to small to medium-sized businesses. They offer a range of funding options that are flexible and differ to a lot of loans on the market as they allow early repayment which reduces the interest charges, you can increase the loan and take repayment holidays.
Fleximize offers flexible loans that offer £5,000 to £500,000 on terms from 1 month through to 4 years. They have designed their loans to be quick to set up and can be tailored to your business needs. Their service gives you a dedicated relationship manager and they offer exclusive member discounts on business tools and services.
19. IGF
Some of the features and benefits of IGF’s alternative small business loan.
- Working capital solutions
- Designed for small to medium-sized businesses
- Fast decisions
- Unique and flexible solutions
- Invoice finance
- Asset-based lending
- Improve cash flow and grow your business
- Tailored offerings depending on your business size
- Suited to a wide range of businesses
- Dedicated support team
IGF is an established business finance provider who offers invoice finance and asset-based lending. They have catered their lending solutions to meet the needs of small to medium businesses and have split their offering to businesses with under and over £5 million turnover.
IGF’s lending solutions enable businesses to improve their cash flow, grow their business or purchase a business. They offer unique and flexible solutions to a wide variety of business types. Their invoice finance includes invoice factoring and discounting to release funds tied up unpaid invoices. Asset-based lending enables businesses to release funds that are tied up in assets such as inventory, machinery and property.
20. Innovation Finance
Some of the features and benefits of Innovation Finance’s alternative small business loan.
- Flexible funding solutions
- Transparent pricing
- Invoice factoring
- Invoice discounting
- Bad debt protection
- Release up to 90% of your invoice values
- Receive funding within 24 hours
- Assistance with credit control services
- Quick decisions
- Offers a customer service promise
Innovation Finance is a financial provider that offers specialist loan service in the form of invoice finance and they also offer bad debt protection. They offer a range of finance solutions to release the money tied up in unpaid invoices quickly and simply.
Innovation Finance’s invoice factoring service enables you to release up to 90% of your invoice values and you can receive the funding in your bank account within 24 hours. This service includes managing all your payment collections, whereas their invoice discounting service offers a similar service but allows you to retain control of your customer communications.
21. Market Invoice
Some of the features and benefits of Market Invoice’s alternative small business loan.
- Offers flexible solutions
- A range of options
- Business loans
- Invoice finance
- Unsecured loans
- Release funds from unpaid invoices
- Choice of discounting services and contract finance
- Fast funding and easy to set up
- No hidden fees
- Smart online platform
Market Invoice is a financial provider that offers loan services to businesses using their smart online platform. They offer a range of invoice finance products and business loan product. They offer funding solutions that easy to set up and release funds quickly.
Market Invoice’s business loans are available for amounts up to £100,000 on an unsecured basis. They offer payment terms up to 12 months and they do not charge early repayment fees. Their invoice finance products include selective and confidential invoice discounting to release funding from all or some of your debtors. They also offer contract finance to release funds against contracts, licences and retainers.
22. Nucleus Commercial Finance
Some of the features and benefits of Nucleus Commercial Finance’s alternative small business loan.
- Offers a variety of funding solutions
- Cash flow finance
- Property finance
- Business cash advance
- Invoice finance
- Asset-based lending
- Construction finance
- Education finance
- Fast and flexible lending
- Transparent alternative finance
Nucleus Commercial Finance is an alternative funding provider that offers a wide variety of products that cater for different business types and loan needs. Their funding solutions include cash flow finance, property finance, business cash advance, invoiced finance, asset-based lending, construction finance and education finance.
Nucleus Commercial Finance’s cash flow finance offers unsecured commercial loans up to £150,000. Their business cash advance offers loans from £3,000 to £150,000 based on up to 125% of your monthly card takings. Their invoice finance lends up to 100% of outstanding invoices. Their asset-based lending allows businesses to raise funds against machinery, stock and property.
Nucleus Commercial Finance website
23. Outsauce Financing
Some of the features and benefits of Outsauce Financing’s alternative small business loan.
- Back-office and financial solutions provider
- Dedicated to the recruitment sector
- Invoice factoring
- Invoice discounting
- Release up to 100% of your invoice values
- Quick access cash flow
- Can handle your credit control solutions
- Expert support
- Flexible service
- Also offers bad debt protection
Outsauce Financing is a back-office and financial solutions provider specialising in providing services to the recruitment sector. They offer two types of funding solutions which are invoice factoring and invoice discounting.
Outsauce Financing’s invoice factoring offers support to businesses that have little or no back-office to do their credit control and manage their sales ledger and provide funding based on up to 100% of the invoice value. Their invoice discounting allows businesses to retain control of their sales ledger and keep the service confidential whilst borrow up to 100% of the invoice value. These products offer fast access to cash flow whilst waiting for your customers to pay their invoices.
24. Paragon Bank
Some of the features and benefits of Paragon Bank’s alternative small business loan.
- Provides a range of business funding options
- Structured lending
- Asset finance
- Development finance
- Secured loans
- Revolving credit facility
- Borrow up to £25 million
- Purchase business equipment
- Lease or hire purchase
- Also offer buy-to-let mortgages
Paragon Bank is a specialist lender and savings bank who offers a range of products and services to businesses in the UK. They offer a variety of finance solutions which include structured lending, asset finance, development finance, commercial mortgages and buy-to-let mortgages.
Paragon Bank’s structured lending provides secured funding from £5 million to £25 million on a revolving credit facility typically over three years. Their asset finance provides funding to purchase new and used assets including business equipment, plant and commercial vehicles as well as lease or hire purchase for fleets. They offer development finance to businesses in the South and Midlands of England and buy-to-let mortgages to limited companies/partnerships.
25. Peak Cashflow
Some of the features and benefits of Peak Cashflow’s alternative small business loan.
- Raise funds from tied up resources
- Invoice factoring
- Invoice discounting
- Confidential factoring
- Asset finance
- Trade finance
- Bad debt protection
- Release funding from unpaid invoices
- Access up to 85% of invoice values
- Finance for new or used assets
Peak Cashflow is an independent financial provider that offers business funding solutions which enable businesses to free up cash flow from sources where their capital is tied up. Their range includes invoice factoring, invoice discounting, asset finance, trade finance and bad debt protection.
Peak Cashflow’s invoice factoring, invoice discounting and confidential factoring allow businesses to release up to 85% of their invoice values with varying degrees of control and confidentiality. Asset finance offers funding for purchasing to new or used assets. Trade finance enables businesses to access high levels of funding through supply chain finance.
26. Positive Cashflow Finance
Some of the features and benefits of Positive Cashflow Finance’s alternative small business loan.
- Choice of funding solutions
- Disclosed invoice finance
- Invoice discounting
- Positive Plus
- Credit management
- Release up to 85% of your sales ledger
- Available for amounts from £10,000 to £1 million
- Credit control support
- Suited to new start-ups and established businesses
- Part of 1pm plc
Positive Cashflow Finance is part of a larger financial company called 1pm plc. They offer a range of business finance solutions which include disclosed invoice factoring, invoice discounting, Positive Plus as well as credit management.
Positive Cashflow Finance’s invoice finance products release up to 85% of your unpaid invoices from £10,000 to £1 million. Their disclosed invoice finance service also helps you with your credit control services as they collect the payments for you, however, invoice discounting allows you to retain control. Positive Plus is a product that is offered as an extension to the invoice finance products which is a loan to help with unexpected financial pressures.
Positive Cashflow Finance website
27. Pulse Cashflow
Some of the features and benefits of Pulse Cashflow’s alternative small business loan.
- Cash flow finance solutions
- Invoice factoring
- Construction linked finance
- Outsourced credit control
- Release up to 90% of your unpaid invoices
- Support in managing your credit control
- Transparent fees
- Fast decisions
- Online management
- Support businesses from start-ups to large businesses
Pulse Cashflow is a financial provider offering cash flow solutions and credit control support services to businesses of all sizes from new start-ups to larger businesses with up to £15 million annual turnover in a variety of business sectors.
Pulse Cashflow’s invoice factoring service can release up to 90% of your unpaid invoices with a turnaround within 24 hours. As part of this service, they will take control of your credit control and will chase payments. They also offer construction linked finance which is a funding solution for construction businesses that is similar to invoice factoring. They also offer standalone credit control services that can be confidential or disclosed.
28. rebuildingsociety.com
Some of the features and benefits of rebuildingsociety.com’s alternative small business loan.
- Loan solutions
- Suited to businesses of all shapes and sizes
- Secured or unsecured loans
- Borrow funds for a variety of reasons
- Quick application process
- Online application
- Decision in as little as 24 hours
- Loans are provided by a community of lenders
- No hidden costs
- No early repayment fees
rebuildingsociety.com is a peer-to-peer lending platform that brings together investors and borrowers who want to get a better deal from ethically minded people. They offer loans to British small to medium-sized businesses who want to borrow the money to purchase a business, grow their business, R&D, equipment purchase, debt consolidation and cash flow.
rebuildingsociety.com offers both secured and unsecured loans for values from £25,000. They provide a quick application process that is online, and you can receive a decision in as little as 24 hours. Their loans are ethically minded and as such have transparent terms with no hidden costs and no early repayment fees.
29. Sancus
Some of the features and benefits of Sancus’ alternative small business loan.
- Straightforward loan alternative
- Matches lenders with borrowers
- Designed for organisations, property developers and entrepreneurs
- Quick decisions
- Short to long term funding
- Secured loans
- Asset-backed loans
- Education finance
- Offering simple solutions to more complex ones
- Experienced credit committee
Sancus is an alternative finance provider that matches lenders with businesses and entrepreneurs that are seeking funding. They provide funding to small to medium-sized businesses who can access the funding through their bespoke digital funding platform.
Sancus’ business loans range includes short to long term business loans from a few days to 5 years which include secured loans, asset-backed loans, bridging loans, development finance and education finance. Their range of products start as simple solutions and go up to more complex products. They offer loans with quick decisions for a wide variety of businesses, trusts and high net worth individuals.
30. Satago
Some of the features and benefits of Satago’s alternative small business loan.
- Cash flow finance solutions
- Technically advanced systems
- Invoice finance
- Credit control services
- Risk insight
- Release up to 85% of your unpaid invoices
- Automation of payment reminders
- Credit reports
- Risk assess debtors and new customers
- No hidden costs
Satago is a financial solutions provider, cash flow management service and accounting software provider. They offer technically advanced invoice finance system through their platform so that UK based limited businesses can manage their cash flow more effectively.
Satago’s invoice finance allows businesses to access up to 85% of their funds that are tied up in unpaid invoices and they offer credit control services that help you to manage your payments through automated email chasing and credit control management. Their risk insight allows businesses to reduce their bad debts, analyse their debtor’s book and risk assess new customers.
31. Spotcap
Some of the features and benefits of Spotcap’s alternative small business loan.
- Simple and straightforward loans
- Loans up to £250,000
- Can be used for any purpose
- Transparent loans
- Quick decisions in one working day
- Terms from 1 month to 24 months
- Online application
- No early repayment fees
- Dedicated client service
- Highly rated on Trustpilot
Spotcap is an online lender who provides finance to small to medium-sized businesses with a more tailored approach to lending and swifter lending process. They provide loan solutions to a wide variety of businesses who can use the funding for any purpose including business lines of credit.
Spotcap’s business loans are easy to apply for using their online application form and a decision will be made within one working day. Their loans offer up to £250,000 on terms from 1 month to 2 years with transparent loan terms and no early repayment fees. They offer dedicated client service and support which has resulted in a high rating on Trustpilot.
32. Start Up Loans
Some of the features and benefits of Start Up Loans’ alternative small business loan.
- Government-backed business loans
- Loans up to £25,000
- Designed for business start-ups or small businesses
- A fixed rate of interest of 6% pa
- Terms from 1 to 5 years
- No setup or early repayment fees
- Pre-loan support
- Offers a range of useful templates
- 12 months of free mentoring
Start Up Loans is a government-backed loan scheme which was established to help people to start or grow their business in the UK. They offer low-interest loans that are supported by free mentoring from experienced business mentors as well as providing a range of useful templates and guides to help businesses develop. They also offer pre-loan support to help people build business plans and cash flow forecasts.
Start Up Loans offer up to £25,000 in loans on a fixed interest rate of 6% per annum over loan periods of 1 to 5 years. Their loans are fair and transparent with no setup costs or early repayment fees.
33. Team Factors
Some of the features and benefits of Team Factors’ alternative small business loan.
- Fast and flexible loan service
- Designed to help businesses grow
- Cash flow injection
- Invoice finance
- Release up to 90% of your unpaid invoices
- Assists with budgeting
- Bridge the gap when waiting for payment
- Suitable for payment terms of 30, 60 or 90 dates
- Credit control services
- Can also provide payroll and PAYE services
Team Factors is a financial provider that offers funding to a wide range of businesses including business start-ups, owner managed businesses and small to medium-sized businesses. They offer tailored cash flow products in the form of invoice finance.
Team Factors’ invoice finance helps businesses to bridge the gap when they are waiting for customers to pay whether that is 30, 60 or 90 days. They will release up to 90% of your outstanding unpaid invoices. They will manage the payment process for you and chase your customers for payment. They have extended their services to include all credit control, staff payroll and submitting PAYE.
34. Ultimate Finance
Some of the features and benefits of Ultimate Finance’s alternative small business loan.
- Offers a range of finance solutions
- Loan product
- Asset finance
- Invoice finance
- Borrow up to £5 million
- Loan terms from 3 months to 5 years
- Rolling contract for invoice finance
- Competitively priced
- Unlock up to 95% of unpaid invoices
- Decisions made quickly
Ultimate Finance is a financial provider that offers a range of funding solutions to businesses that are competitively priced. They offer UK businesses loan products, asset finance and invoice finance which they provide with a quick decision process.
Ultimate Finance’s loan product is a flexible loan offering £7,500 to £250,000 on terms of 3 months to 2 years. Their invoice finance offers both factoring and discounting solutions that allow businesses to release up to 95% of their unpaid invoices within 24 hours up to £5 million. Their asset finance product allows businesses to hire purchase or lease equipment up to £1 million.
35. CrowdProperty
Some of the features and benefits of CrowdProperty’s alternative small business loan.
- Property project finance
- Fast and simple loans
- Transparent terms
- Development finance
- Refurbishment finance
- Bridging finance
- Development exit finance
- Auction finance
- Decision within 48 hours
- No hidden fees
CrowdProperty is a financial provider that offers quick and easy finance solutions to property developers and professionals. They are a crowdfunding style of business that offers their investors inflation-beating interest to keep all parties happy.
CrowdProperty offers a broad range of property finance solutions which includes development finance refurbishment finance, bridging finance, development exit finance and auction finance. They offer transparent loans with no hidden fees and fair terms with a decision being made within 48 hours by their specialist advisors. You can borrow up to 100% of the development or refurbishment costs on residential and mixed-use development projects.
36. Crowdstacker
Some of the features and benefits of Crowdstacker’s alternative small business loan.
- Peer-to-peer lending
- Reduce reliance on bank funding
- Loans from £1 million to £50 million
- Platform to market your product on to investors
- Control your own funding
- Cost-effective and competitive rates
- Online platform
- Support and advise you
- Ethical and fair loans
- Transparent terms
Crowdstacker is a peer-to-peer lending provider that offers businesses an alternative funding route to banks and reduces the reliance that business can have on banks. Crowdstacker is a form of crowdfunding and they have an online platform that allows you to market your products to investors to attract funding.
Crowdstacker’s business loans are for large loans from £1 million to £50 million but unlike bank loans, you have greater control of your funding. The loans that they provide are ethical and fair loans that have clear and transparent terms with cost-effective and competitive rates. The team at Crowdstacker are available to support and advise you through the process.
37. Folk 2 Folk
Some of the features and benefits of Folk 2 Folk’s alternative small business loan.
- Peer-to-peer lending provider
- Loans from £50,000
- Terms from 6 months to 5 years
- Rates from 0.38%pm
- Interest only options
- Secured loan
- Receive the funding within weeks
- Efficient and stress-free borrowing
- Simple and transparent loans
- Available for a wide range of loan reasons
Folk 2 Folk is a local peer-to-peer lending provider that helps to match businesses looking for funding with local investors through their peer-to-peer lending platform. They are locally minded and supports communities to help them to grow and develop.
Folk 2 Folk’s business loans start at £50,000 and can go up to over £5 million on repayment terms of 6 months to 5 years with rates as low as 0.38%pm. Their loans are secured loans that can have interest only options. They claim to offer efficient and stress-free borrowing that is simple and transparent and can be received in a few weeks.
38. Landbay
Some of the features and benefits of Landbay’s alternative small business loan.
- Buy-to-let mortgage lender
- Flexible approach to mortgages
- Borrow from £50,000 to £1.5 million
- Loan to value rate of 80%
- Quick online form
- Decision in principle in 2 days
- Funded by retail and institutional investors and fund specialists
- Borrowers have no contact with investors
- They manage all dealings between investor and borrower
- Responsible lender
Landbay is a buy-to-let mortgage provider that offers a marketplace to bring together investors, borrowers and brokers through their online platform. They provide funding for prime residential buy-to-let mortgages which offer loan to value rates from 65% to 80%.
Landbay’s buy-to-let mortgages are quick to apply for through their online form and you can receive a decision in principle within 2 days and the funds typically a day after the valuation is received. Their online funding platform allows property investors to connect with retail and institutional investors and fund specialists to get the funding they require for their mortgage.
39. ThinCats
Some of the features and benefits of ThinCats’ alternative small business loan.
- Bespoke business loans
- Borrow from £250,000 to £15 million
- Terms from 6 months to 5 years
- Security required
- Take the time to listen and understand your business
- Working capital loans
- Refinance
- Growth finance
- Acquisition finance
- Asset purchase
ThinCats is a funding provider that matches businesses seeking finance with funding from institutional and retail investors. They provide bespoke loan solutions to small to medium-sized businesses that are based in the UK. They claim to be a responsible lender who listens to their customers and gets to know their businesses and what they require.
ThinCats’ business loans are available from £250,000 to £15 million on loan repayments terms from 6 months to 5 years. You will need to provide security to back the loan. They provide funding for working capital loans, refinance, growth finance, acquisition finance and asset finance.
40. LendingCrowd
Some of the features and benefits of LendingCrowd’s alternative small business loan.
- Peer-to-peer loan provider
- Borrow from £5,000 to £50,000
- Terms from 6 months to 5 years
- Be in control of your loan
- Decision within 24 hours
- Receive the funding the same day it is arranged
- Transparent costs and low fees
- Peer-to-peer platform where funders to bid for loan opportunities
- Interest rates starting from 5.95%
- Experienced credit team
LendingCrowd is a peer-to-peer lending platform provider that offers a way to bring together investors and borrowers. Their online platform allows borrowers to post their funding opportunities and for investors to bid for the loan with the most competitive bids with rates starting at 5.95%.
LendingCrowd’s peer-to-peer funding loans are available for amounts from £5,000 to £50,000 on loan terms from 6 months to 5 years. Their loans offer borrowers the control of their loan and to determine the deal that they want and accept. Their loans offer transparent costs and low fees and you could receive the loan on the same day that it is arranged.
41. Huddle Capital
Some of the features and benefits of Huddle Capital’s alternative small business loan.
- Alternative to traditional bank loans
- Bringing together investors and borrowers
- Peer-to-peer lending platform
- Unique and secure system
- Carefully vetted borrowers
- Available to small to medium-sized businesses
- Lending depends on your ability to repay the loan
- Businesses must be based in the UK and be free of CCJs
- Loans can take up to a month
- Experienced team of financial experts
Huddle Capital is a peer-to-peer funding platform provider that offers an alternative to traditional bank loans through their unique and secure funding system which brings together investors and borrowers. They carefully vet their borrowers before allowing them to access the funding platform.
Huddle Capital’s peer-to-peer loans are available to small to medium-sized businesses that are based in the UK, have a bank account and are free of CCJs. The amount you can borrow depends on your ability to repay the loan. Their experienced team of financial experts will assess your application and arrange funding in around about a month.
* Please also note we have an affiliate relationship with iwoca. This means they pay us a commission if you apply for and receive funding for a loan via a link from our website. This comes at no cost to you and helps keep this website free. However, we feel it’s important you know. We may be paid a fee if you visit use EJ Finance and/or Swoop to take out a loan.
Additional Resources:
- Business Loans
- Business Loan Calculator
- Unsecured Business Loans
- Start-Up & New Business Loans
- Working Capital Loans
- VAT & Business Tax Loans
- Merchant Cash Advance
- Invoice Finance
- Invoice Factoring
- Invoice Discounting
- Asset Based Finance
- Commercial Mortgages
- Commercial Mortgage Calculator
- Property Development Finance
- Commercial Bridging Finance
FAQ
What Are Traditional Financial Products?
Traditional financial products are obtained from the banking system, including loans, wealth management advice, savings account, and regular bank account.
They are provided by high street banks and investment banks and were once the only way you could get finance for yourself or your business.
Due to the long history of the financial system, including traditional banks, they can offer an extensive range of financial products and competitive APRs. They tend to have high application standards and low approval rates.
However, more and more people are turning to alternative ways of financing, and with the increase in digital banking, there are many more options now available.
What Is Alternative Lending?
Alternative lending is a way of borrowing money outside the old banking system. Alternative companies are usually online and provide customers with faster service than traditional banks but offer the same products and services. It is a way of stepping outside traditional financial institutions and accessing other financial services.
What Alternatives Could A Company Consider Instead Of Bank Financing?
If you are struggling to get a business loan from a traditional bank, you may want to consider alternatives. You could try leasing, where you can use an asset and pay periodic payments when you need it.
Franchising will help you expand your business by granting rights to another party.
There are three main types of franchising, product, business format and management. Product franchising is where you allow retailers to distribute your products.
A business format where the franchisor provides the franchisee with an established business for them to run independently. Management franchise which provides the management expertise for conducting the business.
There is also an alternative to traditional banking known as peer-to-peer lending. This is a way of lending money directly to businesses without the need for any financial institution as an intermediary. The loans available this way are usually unsecured, and it is normally done through online lenders.
A relatively new way of raising funds for your business is to crowdfund.
This is a way of capitalising on social media platforms and encouraging people to invest in your business or idea. However, this is not always successful and can be a gamble.
You could try angel investors. These are individuals or groups who will invest their own money, usually in exchange for a share in the company.
What Is An Alternative Finance Provider?
The popularity of alternative funding is increasing, and so many companies are entering the space and offering businesses loans for those who struggle with traditional banks.
An alternative finance provider is a company that will give you the funds you need. It will usually be able to do it quicker and with less paperwork than retail banks and traditional financial institutions.
How Are Alternative Financial Products Different From Traditional Financial Products?
The most apparent difference between alternative financial products and traditional ones is the speed you can be accepted. Traditional banks would usually ask for your personal information, months of bank statements, proof of earnings, and complete hard credit checks.
Most alternative lenders have short application forms, don’t require months of income verification, request a small amount of personal information and don’t complete credit checks.
However, alternative lending can mean higher interest rates than traditional banks. They may also leave you open to scams and fraud because they are not as heavily regulated as traditional financial institutions.
How Does Revenue-Based Financing Work?
Revenue-based financing is also known as royalty-based financing. It works by investors investing money into your business in return for a percentage of your ongoing revenue. Investors will get regular payments depending on how much capital they invested.
Repayments do not include interest as in the traditional financial sector; the repayments are agreed at a rate which means the investor ends up with a larger amount than they invested. Both parties agree on this.
Why Don’t Banks Lend To Small Businesses?
It has become increasingly difficult for small businesses to obtain a loan from retail banking. There has been increased regulation in the last few years, resulting in banks believing that small businesses pose a bigger risk than larger companies.
It seems the smaller the business, the bigger the risk for the bank. Traditional banking products may not be available to your small business depending on the type of business and how big your customer base is.
Banks will also prefer to see proof of ongoing success and credibility with evidence of your generated profits. This isn’t always easy for small businesses, meaning they are more likely to be rejected.
Banks also rely heavily on credit rating, and if you have a poor credit score, they will reject you outright.