Why has the alternative finance industry grown so much?
Since the financial crisis of 2008 hit the global economy, traditional lenders have been reluctant to provide funding to smaller businesses. This makes things especially tricky for businesses in the hospitality industry, who generally don’t have the assets necessary to put forward as collateral for a secured loan.
Alternative lenders combine new technology and data to offer innovative funding options that be really helpful for small businesses.
What types of alternative funding is available?
There are so many options to choose from and an abundance of lenders offering innovative solutions. The main types of alternative business finance are:
- Unsecured small business loans
- Merchant cash advances
- Invoice finance
- Asset finance
- Peer-to-peer lending
- Working capital finance
How do I decide which funding is best for my business?
Each type of alternative finance is different, and each one comes with pros and cons. Which finance is right for your business will depend on a number of factors, such as the type of business you own, the amount of funding you need, how long you’ve been trading, and what you need the funding for.
Check out the links above to learn more about the different types available.