Alternative finance is capital investment gained outside of traditional banking. In simple terms, this means financial investment from alternative means such as crowdfunding or peer-to-peer lending. Many SMEs and start-ups often believe that their loan applications are likely to be rejected, or have been rejected in the past, and then seek out alternative methods for getting their services to market. What are the benefits of using an alternative financier?

Finding Funders

Often investment comes with risks and risks can be seen as too great by one lender but not another. Seeking out alternative investors can help you to find those who can see your business potential. When companies fail to get a loan approved to get their business started, alternative financiers can provide money instead.

Mentoring and Expertise

Nicknamed ‘business angels’, some investors, in return for an equity stake, can provide their expertise and ‘soft mentoring’ to feed knowledge into your business that you wouldn’t have gained from a standard bank loan.

Fast Funding

It’s a quicker route to take. Often traditional bank loans take months for application approval whereas an alternative financier can make payments to companies within 24 hours. This quick injection of money can help with the initial stages of building a business quickly.


You arguably get more freedom. Alternative financiers tend to scrutinise businesses less, and the business owner can use the money how they see fit. According to one survey, a third of all business owners are unaware of the alternative funding options, which means they could be getting more freedom and better interest rates just by doing some research.

Cash Flow Joy

Alternative finance can also be received in the form of invoice finance. It can be important for businesses that require steady cash flow. It means that a financier pays invoices upfront to you in advance of your customer paying you. It reduces the risk of late payments and bad debts, an option that would not be offered with traditional banking.

We’re happy to talk through all the alternative finance options available for your business. There are opportunities for all sizes, sectors and experience. GapCap offers selective invoice finance to release cash tied up in invoices on a flexible, no-contract basis. Our easy to use platform gives you a live view of which invoices have been paid and how much you are being charged. Contact us to find out more, or our other cashflow solutions.