Alternative Funding Options for SMEs

Funding signAlternative Finance is playing an increasingly important role in helping small and medium sized businesses to access the finance that they may not have been able previously to obtain through the more traditional routes. This is evidenced by Funding Circle, one of the largest players in the market, recently announcing that it is the 4th largest lender to SMEs, which means that it has overtaken two of the leading High St banks.

Alternative finance providers offer excellent choices for businesses that are looking to grow and manage their cashflow, it’s just a case of deciding which one best suits your business needs.

Crowdfunding and Peer-to-peer (P2P) lending in particular have gained more and more momentum as adoption of these alternative ways to raise funds has increased with the masses.  Interestingly, the Peer-to-Peer Finance Association reported a 90% increase in the number of British firms using P2P lenders in 2014 with lending to UK businesses and consumers reaching a staggering £1.2bn.

Blue Sky Corporate Finance specialises in sourcing and securing funding across a wide variety of providers and we pride ourselves on knowing who is in the market for lending/investing to SME’s in the West Midlands region.  As approved coaches for SFEDI, the Growth Accelerator Scheme and accredited advisors for ThinCats, Funding Circle and Big Potential to name just a few – you can be assured that we provide trusted financial expertise.

We have achieved significant success in securing alternative forms of finance for our clients and the following outlines one example of how we have assisted using a Peer-to-peer platform:

CLS Finance Limited (CLS), a provider of personal car finance, were seeking funding to expand their business and to also enable them to provide their customers with competitive car finance.  Through assistance from Blue Sky a total of five loans were obtained from ThinCats.com over a 2 year period, with almost £750K in funding raised.  The most recent loan was completed in just over 2 weeks from start to finish.

Shaun Young, CLS Finance Limited said: “Due to the very nature of our business, obtaining finance through the traditional routes had proved unsuccessful.  Following discussions with the team at Blue Sky Corporate Finance they suggested we consider using Peer-to-peer lending providers ThinCats.com.  Blue Sky managed the whole process on our behalf which was incredibly quick and efficient.  The funding obtained has helped us increase the number of our operational sites from 4  to 9.”

If you believe this may be an area of interest and would like to discuss your requirements in more detail or obtain a better understanding on how alternative finance could work for you, please contact our friendly, professional and experienced team of advisors for a free no obligation review.

·        Download – The Facts: Peer-to-peer & Crowdfunding

·        Download – An Overview: Peer-to-peer & Crowdfunding