Thousands of business owners are looking for alternative sources to raise finance for starting or growing their business.
If you’re one of them, in this article you will find main ways to fund your business without a bank loan.

1. Family loan

Relatives and loved ones are more likely to trust you with their money than an outsider, and they will probably demand lower interest and fewer incentives than a commercial organisation.

2. Commercial card

Commercial card is a great way to handle on your day-to-day expenses, boost your cash flow and get more time for the work you love. You can apply for a commercial card with your business bank or with a small business credit card provider like Capital On Tap.

3. Small business grant

There are hundreds of government grants available for small businesses. Government grants are available in all kinds of forms and you can find a list of available grants on GOV.UK website or speak to your local council.

4. Start up loan

Start Up Loan is a government-backed personal loan available to individuals, you’ll need to pass a credit check. Start Up Loans offer an affordable source of finance to help new and early stage business owners bring their plans to life. You can borrow between £500 and £25,000 with fixed rate interest rate of 6% p.a.

5. Crowdfunding

Crowdfunding is a way for people, businesses and charities to raise money. It works through individuals or organisations who invest in (or donate to) crowdfunding projects in return for a potential profit or reward.

6. Peer-to-peer loan

P2P lending is a form of lending money to individuals or businesses through online services that match lenders with borrowers. Unlike a traditional lender, the investors you’re connected with — a group of people (peers) or a company — decide whether to fund your loan.

7. Angel financing

Business angels, either on their own or as part of an angel network or syndicate, provide business funding in return for equity, but can also provide valuable experience and guidance to a growing business.

8. Business loan

Business loan is a sum of money that the lender provides and the borrower pays back, plus interest, over a set period of time. Alternative finance providers are often better aligned to your needs – not only because they can offer less strict criteria than traditional lenders like banks, but also because they can be more flexible.

Updated: 2023-03-14

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