​4 Things SMEs Should Consider When Trying To Find The Right Financing

By Credit4

Most businesses will, at some stage of their life, require funding: it might be to help fund expansion or cash flow, or it might be to purchase an asset, but in any scenario the challenge is not just to find the finance, but to find the RIGHT type of finance to meet the particular need.

In recent years, UK SMEs have found themselves deserted by the one place that would have catered for most requirements – the bank. The bank manager could be relied upon to provide the money and to advise on how the borrowing should be structured – or so we all thou...

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Letters of Credit | The TFG Ultimate Guide

Trade Finance

Importers and exporters normally require intermediaries such as banks or alternative financiers to guarantee payment and also the delivery of goods. Cash advances or trade credits on open accounts usually develop after the buyer and seller develop a trusted relationship; therefore trade finance requires financing mechanisms to help support these transactions.

What is a Letter of Credit?

Letters of credit (LCs), also known as documentary credits are financial legally bound instruments, issued by banks or specialist trade finance institutions, which pay the exporter on behalf of the buyer, if the terms specified in the LC are fulfilled.

A LC require...

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Borrowers Guide: Funding Circle

Peer-to-business Loans

Introduction

Peer to Peer (P2P) Lending can offer borrowers competitive rates, favourable term structures and more rapid loan approval times than traditional forms of financing such as bank loans. This is persuading increasing numbers of SMEs to consider the P2P space when looking for financing. According to AltFi Data, the AltFi sector provided over £1bn of funding to UK SMEs in 2014, that’s a 171% growth on 2013. The Liberum Altfi Volume index tracks the growth of Alternative Finance and highlights the thriving P2P business lending sector. With a monthly SME guide focusing on individual platforms, The Funding Centre aims to assist borrowers in facilitating well informed deci...

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Borrower's Guide: Liberis

Revenue-based Loans

Introduction

A business cash advance provides an unsecured cash injection based on future credit and debit card sales, repaid via an agreed percentage of the business’ future card sales. A cash advance is not lending money to a company; it is rather buying a portion of its future revenue. Because payback is directly linked to card takings, it is only repaid when the business makes a sale. Plus, all non card revenue (cash) is kept by the business.

The repayment cost remains the same regardless of how long it takes to repay and as it’s unsecured funding, there’s no risk to homes or assets. The funding can be used for whatever the business needs. Common uses are to plug a cash-flow gap, to ...

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Borrower’s Guide: FundingKnight

Introduction

Peer to Peer (P2P) Lending can offer borrowers competitive rates, favourable term structures and more rapid loan approval times than traditional forms of financing such as bank loans. This is persuading increasing numbers of SMEs to consider the P2P space when looking for financing. According to AltFi Data, the alternative finance sector provided over £1bn of funding to UK SMEs in 2014, that’s a 171% growth on 2013. The Liberum Altfi Volume index tracks the growth of Alternative Finance and highlights the thriving P2P business lending sector. With a monthly SME guide focusing on individual platforms, AltFi Funding aims to assist borrowers in facilitating well infor...

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Borrower’s Guide: ThinCats

Peer-to-business Loans

Introduction

Peer to Peer (P2P) Lending can offer borrowers competitive rates, favourable term structures and more rapid loan approval times than traditional forms of financing such as bank loans. This is persuading increasing numbers of SMEs to consider the P2P space when looking for financing. According to AltFi Data, the AltFi sector provided over £1bn of funding to UK SMEs in 2014, that’s a 171% growth on 2013. The Liberum Altfi Volume index tracks the growth of Alternative Finance and highlights the thriving P2P business lending sector. With a monthly SME guide focusing on individual platforms, AltFi Funding aims to assist borrowers in facilitating well informed decisions.

About

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Borrower’s Guide: Assetz Capital

Introduction

Peer to Peer (P2P) Lending can offer borrowers competitive rates, favourable term structures and more rapid loan approval times than traditional forms of financing such as bank loans. This is persuading increasing numbers of SMEs to consider the P2P space when looking for financing. According to AltFi Data, the AltFi sector provided over £1bn of funding to UK SMEs in 2014, that’s a 171% growth on 2013. The Liberum Altfi Volume index tracks the growth of Alternative Finance and highlights the thriving P2P business lending sector. With a monthly SME guide focusing on individual platforms, AltFi Funding aims to assist borrowers in facilitating well informed decisi...

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Borrower’s Guide: Wellesley & Co.

Peer to Peer (P2P) Lending can offer borrowers competitive rates, favourable term structures and more rapid loan approval times than traditional forms of financing such as bank loans. This is persuading increasing numbers of SMEs to consider the P2P space when looking for financing. According to AltFi Data, the AltFi sector provided over £1bn of funding to UK SMEs in 2014, that’s a 171% growth on 2013. The Liberum Altfi Volume index tracks the growth of Alternative Finance and highlights the thriving P2P business lending sector. With a monthly SME guide focusing on individual platforms, The Funding Centre aims to assist borrowers in facilitating well informed decisions.

...

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Borrower’s Guide: MarketInvoice

Introduction

Invoice Financing is an asset-based working capital solution that allows businesses to get cash advances on invoices secured against approved blue-chip customers rather than waiting which often causes cashflow issues for many SMEs. A number small and medium sized businesses who struggle with the working capital gap have already taken to Invoice Financing platforms as they offer both a simple and transparent process. The Liberum AltFi Volume index tracks the growth of Alternative Finance and highlights the thriving Invoice Financing sector in the UK. With a monthly SME guide focusing on individual platforms, The Funding Centre aims to assist borrowers in facilitatin...

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Borrower’s Guide - RateSetter

Peer to Peer (P2P) Lending can offer borrowers competitive rates, favourable term structures and more rapid loan approval times than traditional forms of financing such as bank loans. This is persuading increasing numbers of SMEs to consider the P2P space when looking for financing. 

According to AltFi Data, the AltFi sector provided over £1bn of funding to UK SMEs in 2014, that’s a 171% growth on 2013. The Liberum Altfi Volume index tracks the growth of Alternative Finance and highlights the thriving P2P business lending sector. With a monthly SME guide focusing on individual platforms, The Funding Centre aims to assist borrowers in facilitating well informed decisions.

About...

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Borrower’s Guide - LendInvest

Through the emergence of P2P lending within the alternative finance space, lenders have been increasingly drawn to the prospect of gaining higher returns on their cash deposits in Peer to Business Lending. With a monthly SME guide focussing on individual platforms and, specifically, an analysis of those with issuance of a loanbook, the Funding Centre hopes to assist borrowers in facilitating well informed decisions.

Since the platform’s inception in May 2013, LendInvest has quickly grown to become one of the prominent peer to peer business lending platforms. The platform lends against residential and commercial property but do not lend against owner occupied property. The primary prod...

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Borrower Inside Track - AltFi Data report on the sector

The alternative finance sector within the UK is growing rapidly. Three of the fastest growing sectors within this industry are: Peer to Peer Lending; Equity Crowdfunding and Online Invoice Financing. All of the new forms of finance offer advantages over 'traditional' routes of them can, and should, be utilised by businesses to help them succeed.

Equity Crowdfunding – raising equity via an online platform from ‘the man in the street’ - is a great way to raise equity capital for your business whilst at the same time increasing brand awareness and strengthening customer engagement (how much more engaged a custo...

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