A very valid question – and one that we are frequently asked.
I could, of course furnish you with a list of rehearsed reasons why alternative finance is ‘better than bank finance‘. But I won’t, and here is why.
Banks continue to perform a valuable role in business funding and to automatically ignore or avoid them will generally not be in the best interest of your business.
Let’s cut to the chase, if your bank really want a your business, they will do it on terms that are very competitive – and if you’ve got the most competitive terms in the market, we will happily tell you so.
So my general advice is ‘please, go talk to your bank first – and then talk to us‘.
Most of our clients have reasonably good banking relationships, which makes all of our lives much easier. The times they turn to us are likely to be:
- They are saving liquid funds for another use.
- Their bank have preceded us on the project (eg the bank provided the mortgage or funded the franchise) and are temporarily fully committed.
- Their bank’s terms indicate that they aren’t terribly interested in the deal.
- The bank don’t get back to them.
- They don’t want their bank to know!
There is no one size fits all – please do talk to your bank, as well as us!