Anyone who owns and runs a small business will already know how much of an impact funding can make. Though the most likely source may have been the banks in previous times, many savvy people are now trying to decrease their dependence and reliance on these providers by locating alternative forms of investment. It’s certainly not a simple task to undertake, but it’s also not impossible if you have the best information and a keen eye for a good deal, so perhaps this is something you should all consider.
So, you’ll probably want to know a little more about some of the opportunities available to you at the current time, right? Well then, it’s a good job I’ve spent the last couple of weeks looking into this area for a friend because now I feel confident enough to point you in the right direction. At the end of the day, deciding which is the most suitable solution will undoubtedly involve some serious forethought, and you should always factor in your current financial situation before agreeing to any forms of lending. Just remember, some people find it useful to employ the services of wealth management firms like westminster-wealth.com, so having a quick browse around their website and learning about the services they offer could be beneficial.
Here are some of the alternative funding routes you could take:
Asset Based Funding
Although most of the major high street lenders do offer this, you’d almost certainly be better off looking for a reputable, private specialist. Basically, asset based funding is obtainable for any business with stock, debtors or property, and money can be raised against the value of all three. Interest rates tend to be a lot lower than those which you might achieve with standard bank loans, and repayment can be made over a much longer period, meaning you shouldn’t experience too much of a burden when settling the debt.
Admittedly, this is only a viable option for companies who act in the wider interests of society, but presuming your firm deals with “green” solutions or something else that truly benefits mankind, crowdfunding could be perfect. On the internet you’ll find dozens of different websites that provide a platform for this to take place, so spend some time reading reviews and decide which is the most suitable. For anyone new to this form of financing, basically it involves members of the public donating cash in support of whatever you need the money for – the level of success you achieve will depend upon how worthwhile your cause is.
Private Equity Funding
In the UK at the moment there are literally thousands of different private equity firms just waiting to supply the capital you need. Sadly, it’s usually a lot more difficult to convince them to part with it, so a strong business plan is almost always in order. Also, interest rates can be a little higher than those you might find at the banks, but if decreasing your reliance on these institutions is a top priority, then perhaps this is something you need to look into.
Anyway, that’s it from me today. I hope you’ve gained some extra insight into the different solutions you could opt for when looking to obtain funding for whatever reason, and now you feel more confident about avoiding the main banks and trying something new.