There has been much criticism of banks, by politicians and the media for not lending enough to businesses, especially since the credit crunch, but there are many alternatives to the mainstream bank loan.
Sadly, there seems to be a lack of awareness within business finance of the options that are available and an Accountant or Trusted Business Adviser may be of crucial help, offering guidance to their clients of the options available that best suit their purpose.
There are a couple of National websites that are supported by professionals and business support bodies which may be worth having a look at:-
www.betterbusinessfinance.co.uk and www.businessfinanceforyou.co.uk
Both of the above sites offer a wealth of information.
Many organisations are part of the Community Development Finance Institution (CDFI) around the UK, most of which cover geographically-specific areas, although the type and size of loans they offer can differ. CDFI’s are supported by public sector as well as the private sector finance and are known as “additional” lenders. They are designed to lend to specifically viable businesses which the banks cannot support or simply cannot support any further.
Many CDFI business lenders use the national CDFA government and bank supported wholesale scheme and look at supporting start ups and existing businesses who are wanting to create or preserve jobs, which is a major feature for the majority of national and local grant schemes.