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What is Fusion Retailing and Should You Try it?

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Transforming a business into a one-stop provider makes good business sense. Modern consumer behaviour and expectation of instant gratification means consumers demand convenience in everything they do.

With the rise and adaption of mobile communication and browsing technology, consumer habits have also changed. Increasing numbers of people ‘shop on the go’ – they don’t want to go to different stores and shops to get what they need if they can see what is available on a little screen.

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A Guide to Commercial Alternative Finance

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Born in the United States of America, the alternative finance revolution has landed on our shores in the last couple of years and raising finance for the SME will never quite be the same again.  It is forecast that by the end of 2015, the altfi market place will have issued new loans of well in excess of £4 billion.

Gone are the days of going cap in hand to the business banker clutching armfuls of finger in the air financial projections produced, at cost, by your accountant.  Gone also are the days of waiting interminable amounts of time jumping through endless banking hoops whilst our “local” banker presents funding cases to far flung decision makers.  Gone are the days of being forced to proffer more and more personal security to support the funding requests of a growing company.

With the SME denied the help of traditional banks, largely due to the outcome of the 2008 crash and the impact of the Basle Accords on bank liquidity ratios, but with demand for vital sources of working capital still there, the number of alternative finance providers ready to plug funding gaps has grown apace.

Businesses come in all shapes, sizes and hues and, as a consequence, every business has its own unique funding requirements.  Alternative finance providers have emerged to focus on specific segments within the SME funding mix.  This is great news for the SME exploring its funding options, but the myriad of potential solutions does create its own challenges and the plethora of new players delivering multiple options can make it somewhat overwhelming for the uninitiated to tread a well planned path through the maze of new finance providers.

In an unstable economic climate banks are less likely to lend – especially to risky business investments. In today’s unpredictable financial market, it is becoming more and more difficult to get approved for a bank loan, which is why the trend for alternative finance solutions keeps on growing. Without these alternative funding options, many businesses would have ceased trading or would-be successful property investors wouldn’t have been able to buy a second property. Read more →

How Alternative Finance Could Plug the Funding Gap Post Brexit

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Whatever you think about Brexit, there’s no denying that it will cause a funding gap for UK businesses. Billions of small business support comes from the EU, so once we officially leave the union it will no doubt have a huge impact on British businesses – what some people are referring to as a “funding black hole.” A report from the Federation of Small Businesses found that £3.6bn of funding comes from the EU, and as the UK government has not budgeted for a replacement regional fund, companies face a shortfall from 2021.

Additionally, the European Investment Fund (EIF) has shifted its focus away from the UK after the Brexit vote, leaving UK tech firms cut off from Europe’s largest source of capital venture funding. This is a huge blow to Great Britain’s tech start-up scene which is currently one of the largest in the world.

When the current EU funding pot runs out in 2021, it is essential that the government invests in local businesses – but that seems unlikely when they haven’t planned for it and have so many other pressing Brexit issues to deal with. So who or what will plug the funding gap? One thing is for sure – it won’t be the banks bailing us out.

Alternative finance solutions

The reality is that many small businesses and start-ups won’t have access to free business support and investment. We predict there will be a rise in personal investors, such as ‘Dragons’ or ‘Angel investors’ and many entrepreneurs will have to look for other ways of funding their business ideas. Business loans from the bank are rarely available to start-ups and the majority of individuals wouldn’t meet the strict criteria, leaving them little option when it comes to financing a business.

The alternative finance market has been providing non-conventional borrowing for businesses for years now, and the responsibility of post-Brexit business funding may fall there. Offering crowdfunding solutions, peer to peer funding, asset finance and unsecured business loans, these alternative finance providers could be the answer for SMEs, start-ups, businesses looking to achieve growth and entrepreneurs alike.

Because alternative finance solutions are tailored, a specialist finance broker can help identify the right financial product for each business. Although they will have to pay the loan back with interest on top, this type of finance is usually more favourable than the bank’s interest rates and the cash is often delivered a lot faster.

Do you worry about how your business will thrive without EU funding? See how Genie Lending can help.