Alternative Finance | Gable Business Finance
At Gable Business Finance, we specialise in helping UK businesses access alternative finance, a broad range of funding options beyond traditional bank loans. Alternative finance offers flexibility, speed, and tailored solutions for companies of all sizes—from start-ups to established SMEs.
Whether your business requires working capital, growth funding, asset purchase, or cash flow support, alternative finance provides solutions that traditional banks may not, especially for businesses with unique needs or challenging credit profiles.
What is Alternative Finance?
Alternative finance refers to non-traditional funding methods operating outside conventional banking. Examples include peer-to-peer lending, invoice finance, merchant cash advances, crowdfunding, and specialist finance providers.
Key Features:
- Flexible financing solutions for various business types and credit profiles
- Faster access to funds compared to traditional lending
- Can be secured or unsecured, short-term or long-term
- Often tailored to the unique needs of the business
- May include equity, debt, or revenue-based repayment structures
Benefits of Alternative Finance
- Quick Access to Funding: Streamlined applications allow faster approvals and disbursement.
- Flexibility: Funds tailored to your business’s needs and repayment capacity.
- Accessibility for Challenging Credit Profiles: Focus on potential and cash flow rather than just credit history.
- Variety of Products: Includes invoice finance, merchant cash advances, crowdfunding, P2P lending, and asset-based lending.
- Retain Ownership: Many options are equity-free, allowing owners to maintain full control.
Types of Alternative Finance
1. Invoice Finance / Factoring
Unlock cash tied up in unpaid invoices by selling or borrowing against them.
- Immediate cash flow improvement
- Reduces reliance on traditional loans
- Flexible repayment based on invoice collection
Use Case: Freelance marketing consultant funding suppliers and staff from outstanding invoices.
2. Merchant Cash Advances
Upfront capital in exchange for a percentage of future card or electronic sales.
- Repayment linked to revenue
- Fast access to cash
- Ideal for businesses with fluctuating sales
Use Case: Restaurants or retail businesses needing short-term working capital for inventory.
3. Peer-to-Peer (P2P) Lending
Loans from individual investors via online platforms instead of banks.
- Competitive interest rates
- Flexible terms
- Access for businesses with limited banking history
Use Case: Start-ups expanding operations without bank approval.
4. Crowdfunding
Funds raised from multiple investors or supporters online, via donations, rewards, debt, or equity.
- Access capital without traditional collateral
- Marketing exposure and customer engagement
- Suitable for innovative or community-focused projects
Use Case: Launching a new product line funded through crowdfunding pre-orders.
5. Asset-Based Lending
Loans secured against business assets such as machinery, property, or stock.
- Access to higher borrowing amounts
- Flexible repayment options
- Can fund expansion or working capital
Use Case: Manufacturing business using equipment as collateral to increase production capacity.
6. Short-Term Bridge Loans
Temporary funding to cover gaps between payments, contracts, or acquisitions.
- Rapid funding for immediate cash flow
- Repaid when revenue is received
- Avoids missed opportunities due to liquidity shortages
Use Case: Construction firms funding materials before client payments.
7. Revenue-Based Finance
Finance in exchange for a percentage of future revenue, rather than fixed repayments.
- Repayments fluctuate with business performance
- Reduces risk during low-revenue periods
- Ideal for companies with strong projected cash flow
Use Case: Online retailers using future sales to repay marketing or inventory funding.
Eligibility Criteria for Alternative Finance
- Business Performance: Revenue, cash flow, and profitability
- Credit Profile: Focus on potential rather than past credit
- Loan Purpose: Clear explanation of fund usage
- Trading History: Start-ups may qualify; some lenders require 6–12 months trading
- Collateral (if required): For asset-based lending
Gable Business Finance helps prepare applications, evaluate options, and identify suitable alternative finance providers.
How Gable Business Finance Supports Alternative Finance
- Assessment: Analyse funding needs, cash flow, and growth opportunities.
- Matching: Identify finance options suitable for your credit profile, business size, and goals.
- Application Support: Assist with documentation, financial records, and projections.
- Negotiation and Approval: Secure competitive rates, flexible repayment, and tailored solutions.
- Ongoing Guidance: Advise on repayment management, refinancing, and leveraging alternative finance.
Repayment Strategies
- Align Repayments with Cash Flow: Base repayments on revenue cycles.
- Use Funds Strategically: Focus on revenue-generating activities or working capital improvements.
- Monitor Costs and Fees: Understand fees and interest.
- Diversify Funding Sources: Combine with traditional loans or overdrafts to optimise liquidity.
- Plan for Growth: Use alternative finance as a stepping stone for expansion or traditional lending eligibility.
Case Study Examples
Case Study 1: Freelance Graphic Designer
Invoice finance unlocked funds against unpaid invoices, stabilising cash flow and enabling on-time staff and supplier payments.
Case Study 2: Restaurant Expansion
Merchant cash advance funded kitchen refurbishment; repayments were manageable through daily card sales, enabling growth.
Case Study 3: Tech Start-Up
Crowdfunding raised capital from supporters for app development, exceeding early adoption targets and building a loyal customer base.
Case Study 4: Manufacturing Business
Asset-based lending secured against existing machinery increased production by 40%, with repayments aligned to cash flow.
FAQ – Alternative Finance
Q: Can start-ups access alternative finance?
A: Yes, providers focus on potential, projected cash flow, and innovative ideas.
Q: Is alternative finance more expensive than traditional loans?
A: Fees may be higher, but speed and flexibility often outweigh costs.
Q: What types are equity-free?
A: Invoice finance, merchant cash advances, P2P lending, and asset-based loans.
Q: How quickly can funds be accessed?
A: 24–72 hours for short-term products, 1–3 weeks for asset-based or crowdfunding.
Q: Can businesses with bad credit qualify?
A: Many providers focus on current performance and cash flow over past credit.
Why Choose Gable Business Finance?
- Expertise: Specialists in UK alternative finance solutions.
- Wide Network: Access to P2P lenders, invoice finance providers, merchant cash advance lenders, and crowdfunding platforms.
- Tailored Solutions: Funding structured to cash flow, growth strategy, and credit profile.
- Transparent Process: Clear guidance on rates, fees, and repayment options.
- Ongoing Support: Advice on leveraging alternative finance for long-term growth and credit improvement.
The Next Steps
- Contact Gable Business Finance to discuss your alternative finance requirements.
- Provide financial records, trading history, and funding needs.
- Receive tailored finance options and lender recommendations.
- Complete applications with guidance and secure funding to grow, stabilise, or expand your business.
Access fast, flexible, and tailored funding options through Gable Business Finance, regardless of size, credit profile, or business stage.