Understanding alternative business loans


If you are a business owner, then typical methods of funding aren’t always available or even suitable. Traditional options like bank loans are not as easy to access as they once were which can leave you in a quandary. For many small to medium-sized businesses, the perfect cure to this problem is alternative business loans.

Generally, alternative business loans are much more flexible and they can also be easier to obtain. The banks expect business owners to meet a set of very strict criteria, and it can take them a long time to make a decision about whether they are willing to lend or not. Alternative Business Loans are a much easier way to get the vital funds needed to grow, quickly and easily.



Article Contents


  1. What is an alternative business loan?
  2. Getting an alternative business loan
  3. Types of alternative small business loans
  4. Who are alternative business loans for?
  5. What can I use one for?
  6. Will I qualify for an alternative business loan?
  7. Raise between £3,500 – £500,000 with an alternative business loan from Capify
  8. Apply for an alternative small business loan today



What is an alternative business loan?


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In simple terms, alternative business loans are non-traditional loans that give you another option to get the funding your business needs. If you have been unsuccessful in gaining a loan from traditional sources like a bank or building society, then they are another way of going about it.



Getting an alternative business loan


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If you are interested in taking out a small business loan or merchant cash advance for your business then we can help. Our alternative loans take into account how your business is performing and other key factors like if you accept card payments along with the volume of card transactions each month.

If you do not know a lot about alternative business loans then it may all seem a tad confusing. For a more detailed explanation on exactly what sort of alternatives there are, the below should help:



Types of alternative small business loans


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This type of alternative funding is pretty much as it sounds! Just like a traditional bank loan, you would apply to loan an agreed amount of money and pay it back over a period of time with interest on. The advantages are that these loans give quick access to the money needed, are much more likely to see your loan application accepted and there is a lot less paperwork to complete. Perhaps the main drawback is that you have to pay the money back in regular instalments – even if you have a bad month for sales.


Merchant cash advances


If you are looking for bank loan alternatives, then this is also a great option. Merchant cash advances see money being advanced to you based on future debit and credit card sales. Usually, they are repaid in the form of a pre-set percentage of your day to day card transactions. The major advantage of this sort of alternative funding is that you only pay it back when you are making money yourself. Merchant cash advances also require no collateral, are simple to apply for and you are highly likely to be accepted for one. The major drawback for this financial product is that you are having to finance against future sales which can be hard to predict for some.


Crowd funding


This essentially sees you use specialist online platforms to attract public funding for your business. In return, you would usually give away a percentage of your company to whoever invests. While this method can be a good way to raise the money you need quickly and raise your business profile, it does have some downsides. The process of getting your business accepted onto crowdfunding platforms can be tricky and time-consuming. It can also see you give away a large stake of your company to investors if you get your sums wrong!


Peer to peer lending


P2P lending still uses online platforms to attract funding from the public but in the form of a standard loan. You do not give any of your company away but simply loan money to pay back over an agreed time with interest. As with crowdfunding though, it can be hard to get accepted onto the major platforms and also attract sufficient interest from people to raise the money needed.


Credit lines

This allows you to set up lines of credit with financial lenders to access extra cash. Many businesses use these to cover short-term issues but they can be hard to get and can also come with additional fees when used. It is also hard to increase your credit limit if needs be. Credit lines are pretty easy to use though and give you great flexibility in terms of cashflow.


Who are alternative business loans for?


In essence, they are suitable for any kind of SME across all business sectors who need an alternative way of accessing extra funds.


What can I use one for?


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The type of funding has a range of uses within business. You could:

– buy new equipment or repair broken machines
– invest in training for current staff
– rent new premises
– put more money into advertising and marketing


Will I qualify for an alternative business loan?


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Our innovative small business loans and merchant cash advances are perfect for a range of business types and legal entities looking for bank loan alternatives. As long as you have been trading for over 6 months and have a turnover of more than £60,000 per annum, you are likely to be accepted.


Raise between £3,500 – £500,000 with an alternative business loan from Capify




Capify offers an innovative alternative business loan where owners can raise anywhere from £3,500– £500,000. Our loan differs from those offered by the banks because rather than paying back the funding monthly, you can pay it back in very small amounts every day. Most business owners love how this works because they don’t have to worry about saving large amounts of money for a fixed date each month.

Capify’s alternative business loan is also unsecured and if you are eligible for the loan then you can have it in your account in as little as a few days. Ongoing funds are also available meaning you can top up your loan after a certain percentage of the original amount has been paid off, something that could really help with the cash flow in your business.


Apply for an alternative small business loan today


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You can apply for an alternative business loan from Capify a number of ways. If you’re the type of person who does most things online, we offer a simple online application which you can access here. Alternatively, if you’d like to give us a call, we’ll be happy to talk you through everything on the phone and find out how much you can raise. You can give us a ring today on 0800 151 0980.



Raise £3,500 to over £150,000 for your small business

Capify offers flexible finance with simple repayments. There are no massive monthly Direct Debits to think about, just small manageable payments that are easy to keep track of.

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