Funding – Don’t Bank On It

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.


  • Chris

    I'm still reading that the banks aren't lending so I am happy to know there are other alternatives for me and my company. it doesn't seem fair that businesses are folding while the banks feather their own nests. cashflow is the real answer to any successful business and having orders means nothing if you can't take on the work and make the sale.

  • Mary Hull

    Bonuses paid to City workers and bank executives are obscene when you think about the businesses that are going under because of a lack of working capital.The banks should be made to lend. That way they would be saving a number of businesses that simply wouldn't fail if they could get the cashflow working through their business.I know of friends who have a good business, sound strategy, and plenty of orders. The only think they are running out of is cash. mainly because they rely on a network of other businesses who are also struggling. It's a rough state of affairs when you see banks paying their own workers vast sums when firms are dying.

  • Chris Everton

    The bank that liked to say yes. Wasn't that the TSB?

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