Since the financial crisis in 2008, Banks have become more reluctant to lend to growing businesses and SMEs.
This has resulted in an increase of funding options available to these businesses, which were first considered as alternatives to banks. However, as these types of finance have become more widely used, they are less ‘alternative’ and are now very ‘mainstream’ in terms of business finance sources.
With so many different types of business finance available, the problem now faced by many growing businesses and SMEs is determining which of these numerous different options is the most suitable to their businesses’ needs.
Informed Funding’s online platform helps businesses decide which source of business finance is best for their business, and by using our simple, free and online 5 step method, you can find a finance provider best suited to your individual business requirements.
There are some key considerations to take into account when you are looking for business finance. Our platform considers factors such as these, and shows which funding options are right for you.
- How much funding do you need?
Different types of business finance offer different ranges of finance, so it is important to know how much you need before you start looking so you can rule out the funding options that either offer too little or too much for your needs. Once you know how much business finance you need, you narrow your search down to the options that your figure falls into.
- What is your current business revenue, or are you a new business?
Some finance options are better suited to new businesses than others, while some are better suited for businesses that have been established. If you are already established, your current business revenue could determine the best option for you.
- Can you offer personal assets as security?
It is often the case that business finance providers require personal assets as a means of security, so you must decide if this is possible for you. Bear in mind that it can make it easier to get funding if you can offer an asset as security, however it also increases the risk to you and your business if you are unable to make the repayments.
- Do you own a business property?
Similar to personal assets, a business property is a good sign of stability. If you own a business property, finance providers are likely to look more favourably at your business, thus increasing the chances of your receiving finance.
- Are you willing to sell shares?
There are some forms of business finance that require you to offer a stake in your business, such as Angel Networks or Venture Capital, where the finance provider will ask for a share in the business in exchange for their investment. This has a variety of benefits, including the potential added experience of having experienced business owners on your board, but it does mean relinquishing some ownership of your business. Other funding options, such as crowd funding, enables businesses to raise money through selling small amounts of shares to the public.
Our platform allows you to find funding options in 5 simple steps. Simply register here, and begin the process at www.informedfunding.com.