Financial funding options for small businesses

Often the biggest challenge posing small businesses is finance. With so many options available, it can be overwhelming trying to choose the ideal type of funding. From traditional bank loans, to business cash advances, there is an option to suit every type of business. This article from 365 Business Finance will cover the best funding options available for small businesses.

  1. Business cash advances

Business Cash Advances are a great way for small businesses to secure capital. Business Cash Advances are affordable, easy to apply for and no security or business plans are required. Here at 365 Business Finance, we offer business cash advances of between £1000 to £100,000, with approval within 24 hours. Flexible repayments are made based on your card sales, providing a secure loan with no hidden fees. With small companies being extremely busy, this form of finance allows for quick financing for any new business venture.

  1. Bank loans

Traditional bank loans are still the most popular form of funding for small businesses. Banks such as HSBC, Lloyds bank, Santander and Barclays all offer business loans. These are widely available and accessible, but require a business plan, pitch and often come with high APR’s. A strong credit history is also required to apply for a business bank loan. With the rise of peer to peer loans and business cash advances, there are more modern alternatives to bank loans. However, bank loans do offer higher security verses other options, and are highly regulated.

  1. Peer to peer funding

Peer to peer funding is somewhat of a recent phenomenon. Traditionally seen as being highly risky, brands such as Zopa have revolutionised the way peer to peer funding works. Peer to peer loans typically allow for fast funding, with slightly lower interest rates as the banking middle man is cut out. Peer to peer funding is also regulated by the Financial Conduct Authority. This can be a useful option for small businesses who are looking for quick funding with low interest rates, and are willing to take on the risk.

  1. Crowdfunding

Crowdfunding is another great way for small businesses to get funding on their latest project. Websites such as Crowdfunder allow patrons to donate money to a worthy cause or business they believe in. The great thing about crowdfunding is that you are under no obligation to pay back the money that has been donated. Crowdfunding is also great for brand awareness, as thousands of people will see your brand and business project online. However, the issue with crowdfunding, is that you have to reach your goal in order to receive your donations. Miss the goal by just £1 and you will receive absolutely nothing. However, there is no risk in crowdfunding because of this reason. So if you have an interesting project, give it a try!

While financing a small company can seem overwhelming, these four options provide an option for every type of small business. To get a quote for our Cash Advances, Click Here.