Alternative Funding

The concept of Alternative Funding has certainly had its critics, but with a market value of around £5 billion and growing, there’s no denying that it now provides a viable option for funding outside the realm of traditional banking.

So, what is ‘Alternative Funding’? Well, if you look at traditional lending, then you’re looking at the balance sheet and lending against the assets of a business. Alternative Funding uses algorithms to access multiple methods of funding by looking at other parts of the business—such as cash flow or bank statements—rather than just the balance sheet.

Alternative Funding can help industries that may typically have struggled to get funding previously and provides innovative ways to help get their businesses to the next level.

Examples of Alternative Funding

A great example of Alternative Funding is a ‘Merchant Cash Advance’ where, for example, retail businesses can borrow money against their card terminal. The funders have security through the credit terminal, and the business owner can gain access to funds with speed and ease—particularly useful when seasonality comes into play.

Potentially one of the most popular concepts in the Alternative Funding space is ‘Crowdfunding’. Crowdfunding’s popularity is proven so, because it provides a level playing field for investors where risk and return sit in equilibrium. More importantly—with the technology used in sourcing the initial investments—it’s possible to produce incredibly flexible repayment schemes to benefit both funders and borrowers, very often even resulting in early repayments.

How can ACF help you access Alternative Funding?

The process is simple and ACF have over 15 years’ experience—so you’re in safe hands!

From an initial conversation, ACF would look to find out more about your business: challenges, successes, possible failures and future objectives. Following that, we’d be looking to gather some financials to help an underwriter understand where your business is heading.

Of course, the beauty of Alternative Funding is that we’re using technology to garner options and therefore leverage fast underwriting decisions. With typically only a two to three-day turnaround to compare the market and present your options, the whole process can be incredibly fast. Once approved, you’d be looking at another two to three days if it was crowdfunding, for example, for investors to raise funds and deposit into a bank account.

To see if Alternative Funding may provide a viable option to help your business contact us here.