Small business finance Unless you’re super talented at what you do, or extremely lucky, chances are you have suffered cash-flow problems at some point or another.

To help ease the strain of fluctuating cash issues, many will attempt to get a bank loan, but many will struggle to get approval. If you’re at a loss on where to turn for finance to bolster your small business then the following list of alternative options might just help.

  1. Start-Up loan

You can start or grow your own business with the help of a government-backed Start-Up Loan. Over 40,000 businesses ideas have been supported with more than £230 million worth of loans. You can borrow up to £25,000 for a fixed interest rate of 6% with no setup or early repayment fees. Some loan providers also provide 12 months of free mentoring when you sign up.

  1. Peer-to-peer-loans

If you’re interested in building a more personal relationship with your lender then a peer-to-peer loan company can put you in touch with private lenders. There’s many well-established companies working in this space to choose from. The online application is straightforward and by cutting out the costs and complexity of dealing with banks, you can get an affordable loan for your business in just weeks – not months.

  1. Micro loans

If you only need a small amount of money then a micro-loan might just be for you. Unlike traditional bank loans, which are typically for larger amounts, microloans are accessible to a much larger portion of the population. Micro-loans are tailored to your circumstances and can be used alongside funding from other sources. Micro lenders will approve a wide range of applicants, some of whom might not be able to secure loans from other institutions.

  1. Bank overdraft

If you have a fluctuating income then you could always dip into a bank overdraft in the months where cash is limited. Many major banks can offer a bespoke package to a new business and most major banks charge interest only on the amount you overdraw. An overdraft facility is easier to avail of compared to longer term loans which may require more paperwork. It also aids in ensuring that timely payments are made and no late payments penalties are faced.

  1. Cash advances

Cash advances can be an important source of funds in an emergency or a way to help you avoid overdraft fees. With a cash advance there’s no pressure of meeting a monthly repayment and you only pay it back once your customers pay you. If your business accepts credit card payments from your clients, you can get a cash advance of up to £100,000 without having to approach the banks.

  1. Asset finance

Asset finance works much like the way a mortgage works. You borrow money against an existing possession, and if you can’t meet your payments, then that asset is repossessed. You can use property and premises, inventory and equipment as collateral.

  1. Crowdfunding

Crowdfunding is the equivalent of the charity sponsorship page in business. You can get an idea of the popularity of your idea through Crowdfunding whilst getting plenty of promotion in the process. Small business owners that are being turned down by High Street banks now have an opportunity to appeal directly to small investors. Investing in small businesses was once for the rich, but this new concept means anyone can reap the benefits of investing in start-ups.

If you are a KashFlow user there is a way to plug the gap in your finances. We’ve teamed up with iwoca, an award-winning business finance provider, to offer KashFlow users simple access to funding. You can sign up in minutes and get approved and funded in hours. It’s 0% interest for your first month and your loan is completely free if you repay within 30 days.

KashFlow is small business bookkeeping software that can help give you an altogether clearer picture of your financial position. The automated credit control feature means you never have to remind customers than an invoice is becoming due or is overdue. There are three pre-written reminder letters, which the system can send automatically to people who are late paying you. When you log in to KashFlow, you will instantly see how much you’re owed and how much of it is overdue, allowing you the opportunity to identify whether you need to plug any gaps in your finances.

For a free no-obligation 1-2-1 demo of the software just call the KashFlow onboarding team on  0844 815 5779.


See how IRIS KashFlow works with your business and your books