The old-fashioned bank overdrafts are a useful cash flow solution, however, they’ve become more difficult to access as banks have been reluctant to lend. There are promising business overdraft alternatives.
Factoring and invoice discounting Recruitment, haulage or business services sectors. Looking to expand, or simply seeking breathing space? Factoring and invoice discounting are available. It flexes naturally with your business. You can also get finance against purchase orders, or even auction your invoices.
Fast business loans If you only need to finance a short-term shortfall, there are purpose-built products within alternative finance that can help you bridge the gap without committing to long-term finance.
Merchant cash advances Shops, hotels and restaurants. Receiving lots of card payments, merchant cash advances are an incredibly flexible way to raise money. The best thing is that you pay back the loan as a percentage of your turnover, and overpayments can also be agreed at short notice to cover unexpected bills.
Revenue loans This type of business loan lets you pay back as a fixed percentage of your revenue, aligning to your trading peaks and troughs.
Trade finance Trade finance is a complex but useful source of funds for your stock purchases, typically when you’re bringing in goods from abroad or exporting them to your seller.
Peer-to-peer lending and crowdfunding Allow you to borrow money from, or sell equity to, one or more individuals using an online platform. The process links suitable businesses with investors who will be looking for a decent return on their investment.
Asset refinance Machines, vans or printers that you’ve paid down? Lease them back so you keep them in your business, but free up much-needed cash.
Property refinance Equity in your premises can be used to secure business finance.
Revolving loans Stepping into the void left by banks withdrawing or reducing overdrafts, new lenders are entering the market offering something very similar. You’ll need a good trading history or a strong business case.