High Street BanksYour typical High Street Bank might give you a small overdraft loan or a business credit card but securing substantial amount of money is normally a long and difficult process with a lot of paperwork involved.
Online BanksSecuring funds is available through other routes as well, especially through new online financial banks. These new online banks have made the application process convenient and swift with all application forms being filled online.They also have different criteria for lending small businesses loans. Fintech has definitely made it possible for new financial service providers to provide small business and startups with cheaper and more readily available finance.Small businesses and startups are now able to secure financial loans from online financial providers to allow for both growth and cash flow management to ensure that small businesses are given the help that they need.This more readily available loan option is proving to be very popular with small businesses and startups. As Fintech service options grow with new digital and technological advances, so are the options that are open to small businesses.
CrowdfundingCrowdfunding is another way to raise capital for your small business and is a popular option with startups. There are many different online platforms that can be found depending on the type of finance that needs to be secured.
Peer-to-peer lendingPeer-to-peer lending is becoming more popular with many new online lending sites appearing. This means that a degree of caution needs to be taken in choosing which online provider to join. There are a couple of leading peer-to-peer online lending providers that stand out and they should be researched to see if their loan model suits your small business needs.
Shoaib Aslam is the co-founder of Pearl Chartered Accountants, a UK-based chartered accountancy firm that has multiple locations across London. They are experts in helping startups and established businesses with all aspects of growth, strategy, scaling up, accounting and tax planning.