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Why choose alternative business finance?
More UK small and medium-sized businesses (SMEs) are choosing alternative business funding over traditional bank loans.
Alternative business finance offers flexibility, faster approvals, and more personalised options than most banks. For many SMEs, this is the perfect fit to help grow their business without the long waits or strict requirements of bank loans.
In this guide, we’ll look at what alternative finance is, why it’s become so popular among UK businesses, and how companies like Fleximize are making alternative funding easier than ever.
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What is alternative finance?
Alternative finance is funding that doesn’t come from traditional banks.
These options - like peer-to-peer lending, crowdfunding, and invoice finance - often provide faster and more flexible solutions for businesses that might not qualify for a bank loan or don’t want to wait for one. This is especially common in UK alternative finance, where many SMEs are moving away from traditional banks.
Is alternative business finance regulated?
Alternative business finance in the UK is not always regulated by the Financial Conduct Authority (FCA). However, many responsible lenders, like Fleximize, voluntarily follow FCA guidelines to ensure fair and transparent practices. This commitment helps give SMEs confidence that their funding is handled with care.
Not all alternative finance providers adhere to these standards, so it’s essential to research and choose a trusted lender like Fleximize.
How to borrow safely
If you’re interested in alternative business funding, here are a few tips to make sure you borrow safely:
- Check lender credentials. Make sure any alternative finance provider you consider is FCA-regulated.
- Understand loan terms. Read all the terms and conditions, including fees and interest rates.
- Use reputable lenders. Stick to well-known alternative UK lenders like Fleximize, which prioritise transparency and support.
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What are examples of alternative lending?
There are many different forms of alternative lending. Here are some examples of alternative business lending that are commonly available for SMEs:
- Secured business loans require collateral, like property or equipment, which often results in lower interest rates.
- Unsecured business loans don’t need collateral, so businesses don’t have to risk assets like property or equipment to get funding.
- Asset finance helps businesses spread the cost of major purchases - such as equipment or vehicles - over time, making large investments more manageable.
- Invoice finance is perfect for businesses that need cash quickly, invoice finance allows companies to use unpaid invoices as collateral to raise funds.
For more information, check out Fleximize’s types of business loans page to see how these loans work.
How does alternative lending work?
The process for alternative lending is usually faster and simpler than traditional bank loans. Here’s a typical step-by-step guide to how it works:
- Businesses start with a simple online application, which takes less time and paperwork than a bank loan.
- Alternative lenders for small businesses often have faster approval processes, so businesses can hear back within days instead of weeks. With Fleximize, this can be as little as 24 hours.
- Once approved, businesses typically receive the funds in their account quickly. We can deposit funds on the same day.
At Fleximize, the goal is to make the funding process as smooth and fast as possible. As a trusted alternative finance provider, Fleximize offers funding that works around each business’s needs.
How does Fleximize's alternative finance work?
Fleximize offers both secured and unsecured business loans to help SMEs grow. Our loans can be used for anything from buying new equipment to expanding your workspace. Whether you choose a secured or unsecured loan, we make it easy and flexible to get funding.
Here’s what you can expect:
- Borrow between £10,000 and £500,000, with terms from 3 to 60 months
- Competitive rates, starting at 0.9% per month for secured loans and 1.5% for unsecured loans
- Fast approvals - get access to funds within 24 hours of completing your application
- Secured loans are backed by an equitable charge, allowing same-day deposit after approval
- Flexible features, like top-ups and repayment holidays, to help manage cash flow
- No exit fees or early repayment penalties, so you can save on interest by paying early
As one of the top alternative finance providers in the country, our goal is to help UK businesses grow by providing easy access to funds without the strict requirements of a traditional bank. The Flexiloan and Flexiloan Lite give you the speed, flexibility, and support to keep your business moving forward.
What are the pros and cons of alternative loans?
There are several benefits to using alternative business loans, but it’s also essential to consider potential drawbacks. Here’s a look at some key points to consider.
Pros:
- Most alternative business funding providers offer terms that suit SME needs, unlike rigid bank loans.
- Alternative lenders often approve loans within days, compared to the weeks it can take with a bank.
- Many alternative UK lenders don’t have the same strict credit score requirements as banks.
Cons:
- Some alternative business loans may come with higher interest rates than traditional bank loans.
Alternative finance vs traditional bank loans
What are the main differences between alternative finance options and traditional bank loans? Let’s look at a few of the key points:
- Alternative finance applications are often simpler and faster. This makes them ideal for SMEs who need funding without lots of paperwork.
- Bank loans can take weeks, while alternative business funding UK can often be approved in days.
- Unlike banks, alternative business lenders UK provide more flexible terms tailored to SMEs’ specific needs.
So why do businesses still go to the banks?
While alternative business funding is growing in popularity, some SMEs still go to banks for loans.
Why? Banks often offer lower interest rates and are seen as a safer, more familiar option. However, for businesses that value speed and flexibility, UK alternative finance is usually a better fit.
Do I qualify for Fleximize's alternative business loans?
Qualifying for Fleximize’s alternative business loans is straightforward. Fleximize looks at several factors, including revenue and business health, to determine eligibility. As a trusted UK alternative lender, Fleximize offers flexible solutions that meet SMEs’ unique needs.
Fleximize’s loans are designed to work around your business. If you’re looking for alternative commercial lending that can provide fast access to funds, Fleximize could be the ideal choice.
Why choose Fleximize?
Fleximize is a top choice for alternative UK finance because we offer:
- a variety of loans tailored to the needs of small businesses.
- guidance throughout the loan process to ensure businesses are comfortable and informed.
- quick funding, allowing you to meet financial needs without long waits.
How to apply for alternative finance with Fleximize
The application process with Fleximize is simple and straightforward:
- Apply online in less than five minutes. You’ll find out if you’ve passed our initial checks instantly. If you do, all you’ll need to do is supply a few documents.
- You’ll be given a dedicated relationship manager to guide you through the final steps of your application. They’ll aim to give you a decision within 24 hours.
- Once you’re approved, we’ll deposit your funds immediately – usually on the same day.
Types of alternative funding solutions
Alternative business funding comes in many forms, each designed to meet different needs. Here are some types of alternative funding available for SMEs:
Small business loans
Small business loans are flexible and ideal for companies needing extra cash for daily expenses or projects, such as working capital and cash flow. Alternative UK business lenders like Fleximize focus on providing funding for these needs.
Unsecured business loans
Unsecured loans are great for businesses that don’t want to put their assets at risk. You don’t need collateral, which makes this option flexible and fast. Check out Fleximize’s unsecured business loans page to learn more.
Secured business loans
Secured loans require collateral, like property or equipment, to secure the loan. This type of loan usually has lower interest rates because it’s less risky for the lender. It’s ideal if you want to borrow a larger amount and are comfortable using assets as security.
Asset finance
Asset finance allows businesses to buy assets without paying the total cost upfront. Instead, payments are spread out over time, making it easier to buy equipment or vehicles.
Invoice finance
With invoice finance, businesses can raise cash quickly by using unpaid invoices as collateral. This type of finance improves cash flow, helping companies avoid waiting for payments.
Property finance
Property finance allows businesses to secure funds against property assets, whether residential or commercial. It’s often used by companies that need capital for growth.
Stock finance
Stock finance is designed for businesses that need quick access to cash for inventory. This type of finance is ideal for companies with a fast turnover of goods.
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