Non Bank Business Loans
If you're looking for a business loan but have been turned down by a traditional bank lender, maybe it's time to consider a non bank business loan. Find out more and apply below.
- Compare a wide range of lenders and rates
- Check your eligibility in minutes
- Find out how much you could borrow
It's fast, free and won't affect your credit score
- What is a non bank business loan?
- The rising popularity of non bank lending
- Advantages of using a non bank lender
- Non bank corporate loan options
- Where to find non bank business lenders uk
- Finding the best non bank business loan
Checking won’t affect your credit score
What is a non bank business loan?
A non-bank business loan is a loan not obtained through a traditional bank. A non bank lender is an alternative lender offering business loans and other financial products to businesses, with more flexible lending criteria and eligibility requirements. The process of getting a loan from a non bank business lender is usually online, making the application process quicker and easier for busy business owners.
The rising popularity of non bank lending
Non-bank lending offers borrowers a quicker approval process, which means funds can be in their bank account in a matter of hours after approval. And, with more flexible lending criteria and more varied business loan products, it’s not surprising that 60% of SME lending happens outside of traditional high street banks.
Bank lending can be very rigid, particularly for small or startup businesses. Without a solid trading history or near perfect credit history, many businesses struggle to access funding to grow their business.
Non bank lending is making funding accessible to all kinds of businesses, regardless of size, trading history, or credit score — there’s likely to be a loan product perfect for your business needs out there.
Checking won’t affect your credit score
Advantages of using a non bank lender
Make sure you weigh up the pros and cons of using a non bank lender before choosing your lender.
Wider range of products
You don’t just have ‘business loans’ to choose from, there are all kinds of specific loan types to choose from — invoice finance, line of credit, merchant cash advance, bad credit loans, etc.
More flexible and accessible
Lenders assess applicants on a case-by-case basis; that’s why approval rates are higher than they are with traditional lenders. If you’re a startup or a sole trader, chances are, you’ll find exactly what you’re looking for from a non bank commercial lender.
They offer bad credit loans
If you have bad credit, that can sometimes halt your application process with a traditional bank. With a non-bank lender, they’re willing to work with you to find a better loan fit than one that perhaps requires better credit, for example, a bad credit loan or a secured loan.
Faster loan approval
No in-branch visits, upload required documents and submit your loan application. Hear back from lenders quickly and see funds in as little as 24-48 hours.
Non bank corporate loan options
If you’re considering a non bank business loan, what are your loan options? Here are a few of the most popular choices:
Merchant cash advance
A merchant cash advance is a type of revenue-based finance. Based on your future card sales, you can apply for up to £300,000 with a non bank lender and repay as a percentage each month. This type of finance works well for companies with revenue that ebbs and flows as you don't repay in fixed repayments.
Family and friends loans
Getting a loan from family or friends can give you instant access to funds without the need for an application, credit check, or extortionate interest payments. Lending from loved ones can be a great way to grow your business, but just ensure there's a formal agreement between the two parties outlining details like repayment schedules, length of the loan, and loan amount.
Line of credit
A line of credit works a bit like a credit card in that you can draw funds down as and when you need them and only pay interest on the money you use. A line of credit can be non-revolving and revolving, so you have some options to consider.
Invoice finance
Invoice finance can be a great way to improve short-term cash flow issues. You can sell either one or multiple invoices to the non bank lender, and they can front you up to 95% of the unpaid invoice value. This is a great option if you have creditworthy customers and less than perfect credit history (lenders are more fussed about customer credit scores than your own!).
Crowdfunding
If you have a business idea but you don’t have the capital to launch it, but you think your audience will back it, you can crowdfund to raise small amounts of money from a large pool of investors. Using specific crowdfunding platforms like JustGiving or GoFundMe, businesses can reward investors or give equity away in their business in exchange for funds.
Government grants
Although competitive and long-winded, applying for a government grant can be a great way to access funds you don't have to repay. There are plenty of grants offered by the government, so it's worth using our business grant finder tool to see if you qualify for any current grant schemes.
Where to find non bank business lenders uk
The best place to find non bank lenders is by using an alternative lending platform like Capalona, here you can compare non bank business lenders side-by-side and understand interest rates, total repayable, and more at one glance. We work with direct lenders based in the UK, you can check out a handful of our lenders here.
Checking won’t affect your credit score
Finding the best non bank business loan
Here are four steps to finding the best non bank commercial loans:
1. Compare your options
Start by comparing what's out there. You can do that by using our free business loan comparison tool. Our tool is self-serve, which means you can find and compare eligible non bank small business loans whenever it's convenient for you.
2. Get quotes
After sharing some details about how much you want to borrow, your reason for borrowing and the preferred loan term, you can instantly generate illustrative quotes from eligible lenders. Expand each quote to learn more about the offer and take your time.
3. Understand your options
You're under no obligation to accept any quote you see. There's no pressure to take anything further. Sit with your quotes and take your time to understand which loan is right for you.
4. Apply online for a quick and easy loan application
If you find a quote you like, you can click on the listing to proceed with the lender and continue your application with them.
Getting a quote won't affect your credit score. Find and compare non-bank business loans.
About the author
Adrian T
5/5
Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
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