Since the start of this year a new type of funder has appeared. They specialise in lending sums up to £100K for short periods of time. One I am dealing with at the moment will lend for as short a time as a few days, a few weeks or a few months, up to a maximum of 12 months.
This type of funding is not cheap but very useful if you need extra funds for just a month or two. One client needs to buy additional fast moving stock that has a good profit margin, he cannot get funding from his Bank so this type of short term funding is ideal.
Some of these funders want Personal Guarantees but others don’t. Typical charges, depending on risk are from 0.1% to 0.3% per day plus arrangement fees.
One funder has a useful revolving facility where a maximum level of funding is agreed and you can take money out and put money back in as the need arises and you are only paying interest on the money used at any one time.
The main criteria for these loans seem to be at least one set of filed accounts, followed by a sales forecast that shows that you can afford the repayments.
This is not cheap money but for short term borrowing it can be useful.