Business Banking

As an alternative to providing collateral for your business funding through traditional asset finance; small businesses can now look to social lending through Funding Circle. This is a new online marketplace where small businesses can access low cost unsecured business loans of between £5,000 and £250,000.

Watch the video to the right to see how business lending works on Funding Circle’s marketplace. Here small businesses can directly borrow from people in the UK, sidestepping the margins of banks and asset financiers in the process. Lenders compete in an online auction, where they bid an amount and an interest rate. The lowest interest rates are accepted so your business will get the best possible rate.

Asset finance is any kind of business finance secured by an asset. It can include tangible goods, such as equipment and intangible assets, for example accounts receivable, patents and intellectual property. Asset finance can be more expensive than other types of financing. There are also likely to be a number of extra costs to cover, such as valuing the asset and arrangement fees. Another major drawback to asset finance for many businesses is that since the level of funding is contingent upon the asset values on the balance sheet, there may not be sufficient liquidity. This type of loan is typically only beneficial for asset rich companies; while many service companies would be at a disadvantage.

You can use a Funding Circle loan to purchase an asset outright and then pay fixed monthly repayments back to us over 1, 3, or 5 years. It often can be considered dangerous to tie short term assets to long term finance. Which is why a Funding Circle loan is ideal as you can pay off the loan early at no extra cost. Whereas with asset finance, your company could be locked in to an inflexible, long term arrangement that may be difficult to terminate. Funding Circle offers low interest rates for borrowers. Best of all, it's quick and easy to do.

Asset finance made easy

“Funding Circle have been most attentive and professional in their dealings with us. In these cash starved times I think this is an excellent way to obtain funding at a very reasonable rate of interest.” Manufacturer, Cheshire

Related info: Business finance | Business funding | Business lending | Funding for business | Working capital loans