Alternative Business Funding
the non-bank funders collaboration
Having trouble about where to find finance for your business? Prepare to find out more about some of the International alternative funding providers..
Seedplantersglobal.com – a one-stop portal to help access funding for your business.
Seedplantersglobal.com to support SME rejected funding applications.
A unique collaboration between International alternative business funders, aims to make borrowing easier for the International SME – whilst aiding the main banks to support applicants they cannot fund.
At seedplantersglobal.com, we connected to several international major alternative business funder platforms such as Peer-to-Peer Business Funding.
Peer-to-Peer lending (P2P) is an online process that matches investors with savings or capital directly with borrowers looking for a loan, sidestepping the bank in the process.
Advantages: Borrowing via P2P lending is generally a far simpler and quicker process than borrowing from a bank – borrowers access finance within days or weeks rather than months. All fees are clear and up-from and there are no restrictions for paying back the loan early. Businesses can borrow for paying back the loan early. Businesses can borrow for a variety of reasons including working capital, expansion capital, asset finance and property finance. Companies that want to borrow.
Companies that want to borrow less than $200,000.00 typically be asked to provide personal guarantees from the directors as security, rather than a charge over the assets of the business or over your personal assets.
Equity Crowd funding:
Crowd funding democratizes the process of raising money. Equity crowdfunding is on the rise and is a terrific new alternative for early-stage businesses.
Using sophisticated online platforms; ordinary people and experienced investors alike can support the projects they believe in by investing money in exchange for shares in the businesses. If you want to raise finance in this way you usually need to produce a video pitch – giving backers something to sink their teeth into-write about your team, specific business objectives and your plans for monetization. You’ll also outline the percentage of equity you are offering and amount of investment you need to raise. Each campaign is likely to be heavily screened to ensure it is fair, clear and not misleading before going live to the public. Minimum investment through equity crowdfunding is generally very low – and can be as little as $20.
Platforms tend to operate an “all-or-nothing” policy. In other words, if your campaign falls short of its fundraising target after a set number of days all the funding you had received would be returned to your backers. Equally, if you surpass your fundraising target, it is possible to then set a secondary target to satiate investor demand. Some platforms also have post-investment tools that allow you to interact with investors after
Advantage: Equity crowd funding is a very flexible alternative for businesses who aren’t yet ready for angel investment or taking on bank loans. These platforms provide an opportunity for businesses with great potential to reach out to their existing community of users or partners to invite them to be a part of their success. It is also a powerful marketing tool to reach new audiences through social media and the press. Businesses can then grow with the support of their – often large – investor base. Many businesses that are successful at equity crowd funding have attracted investors that can bring practical skills and expertise to the business. Such as financial management and strategic marketing. Equity crowd funding can give a businesses more value than money alone.
Invoice trading is an online version of debt factoring that is much more flexible and faster for businesses to access. Your business can raise working capital by selling individual, unpaid invoices online to a network capital of investors. These investors advance you up to 90% of the invoice face value, in exchange for a small fee. It remains your responsibility to chase and retrieve the debt on behalf of the investors, who are repaid when the invoices is repaid by your customer.
If investors do not receive payment-in-full at the pre-determined repayment date, then it falls to you to reclaim the invoice, and refund them, As with most alternative finance models, the platform takes a small fee for matchmaking services, on top of what investors take.
Advantage: Invoice trading is a fantastic method of combating cash-flow issues, which so often cripple SMEs. You can gain fast access to the working capital you need and unlock finance not otherwise seen for up to 120 days. Sites like Platform Black and MarketInvoice are offering a superior level of flexibility to traditional forms of invoice finance. You can make use of the platforms as and when you like, choosing specific invoices and debtors to raise funding against. There are no requirements for personal guarantees or debentures. Your unpaid invoices are the only ‘assets’ you need to access funding.