Short term business lending is seen as one of the easiest ways for businesses to raise funds. It can be used for anything ranging from growth of your business to borrowing for cash flow purposes for times like when you’re waiting for an order or job to come in. However, it can also be one of the hardest types of funding to get if you end up going through the traditional routes of simply speaking to your bank manager.
Because of this, in recent years, there’s been a massive shift in the short-term lending market and now there are a number of challenger banks and online crowdfunding platforms that are seen as excellent ways to raise money in a very fast timeframe. Compared to a conventional bank loan which can sometimes drag out over a three-month period, a typical short-term funding application could see you apply and have the money within one week.
What can we do?
We’re able to borrow money for whatever you may be looking to do within your business, and we’re able to do it in a cost-effective way with companies that are reputable and regulated by the Financial Conduct Authority, though the lending itself may not be regulated.
What have we done?
We recently raised £100,000 for a shop-fitting business who had recently taken on a large amount of orders but needed to purchase the stock upfront. The lender simply wanted to see last year’s accounts and proof of the directors’ ID. They didn’t need to see proof of the forward orders or any information about it.
We also helped a client that was looking to buy one of their competitors. They were looking to raise £200,000 to buy the company in full but they didn’t have the money to buy it, despite knowing that doing so would strategically give them growth and allow them to push the business forward. We were able to find a lender in a deal with a very quick turnaround on a crowdfunding platform, so they were able to see exactly who was investing into them.
Unsecured lending is probably one of the most complicated and difficult markets to enter if you are unsure on what you need to do, so it’s important that you speak to a specialist. You may find that your bank manager is only able to offer their own products, and depending on the industry you’re working in, they may be unable to offer a competitive rate.