MANY of you will remember the bank that liked to say ‘yes’. These days, however, most are saying no, despite being part owned by the Government.
As a result businesses are losing potential sales through a lack of working capital, although all that could soon change for your business. Because a growing number of businesses are offering alternative funding. Funding Circle, an online business-lending service is aimed at firms who need loans and are not able to arrange funding from banks.
The interest rate can be considerably less than that gained on the high street through more traditional means. Up to £50,000 can be borrowed, usually over one or three years, with a fee of around 2% on the amount borrowed the norm. The lenders get to choose who they want to lend to in some cases and the money is spread across businesses to reduce the risk.
So, if your business needs working capital, there is hope. Invoice factoring, through which firms can raise funds against unpaid invoices, is another option, while asset finance is a further consideration.
Where there’s a will – and a healthy business – there’s a way. With or without the banks.