Funding for Growth using Non-Bank Funding

Typically, if the bank manager said “no”, there were very few alternative funding providers. Where-as today, there is an overabundance of potential funding sources.

Peer-to-Peer (“P2P”) or Crowd funding SME secured lending is readily available for Scottish SMEs providing a real alternative to borrowing from the high street banks. Loans range from £100,000 to £5m, although smaller amounts are possible. P2P lending is particularly suited to business growth funding and/or property development.

Funding takes the form of a commercial loan and is available for a repayment period of between 6 months and 5 years, or up to 30 years for commercial/investment property loans.

Loans are typically capital and interest, that are repaid monthly and interest rates for these types of loans range from 7% – 12%. Loans are normally secured in the form of Fixed and Floating Charges over company assets and/or Personal Guarantees. Early repayments often incur no penalties.

From the beginning of the process – to receiving the funding, can normally take between four and six weeks.

Remember, it’s good to shop around; seeking a SME P2P loan is no different. Various platforms will provide a different assortment of loan offerings. Getting professional advice can be invaluable in helping you get the best deal.

If you are looking for funding and need advice or further information, please contact Steven Todd via steven.todd@eqaccountants.co.uk or call 01592 630055.