Funding Alternative offers short-term unsecured business cash advances of £15,000 to £250,000, plus merchant cash advances and selective invoice financing, to UK businesses registered in England, Wales or Scotland. It publishes typical repayment periods, eligibility revenue levels and the security it asks for.
At a glance
- Product type
- Unsecured business loans
- Based in
- Chessington, Surrey
- Company number
- 11501528
- Part of
- Funding Alternative Group Ltd, parent of Funding Cash Advance Ltd and Funding Your Invoice Ltd
| Product | Amount | Term | How you repay |
|---|---|---|---|
| Business Cash Advance | £15,000 to £250,000 | Typically 3 to 9 months | Fixed repayments, or flexible repayments taking a percentage of receipts plus a minimum weekly amount |
| Merchant Cash Advance | £15,000 to £250,000 | Variable, typically 9 months | Taken from daily card sales |
| Selective Invoice Financing | Up to £250,000 | Not published | Not published |
Figures are Funding Alternative’s own published terms, checked on . They can change, and what you are offered depends on your business: see Funding Alternative’s site for current terms.
Who is Funding Alternative?
Funding Alternative is a UK provider of unsecured business loans. The legal entity named on its site is Funding Alternative Group Ltd, company number 11501528. It is based in Chessington, Surrey. It is part of Funding Alternative Group Ltd, parent of Funding Cash Advance Ltd and Funding Your Invoice Ltd.
Funding Alternative’s About page gives no founding date or history. It lists a single office at 104 Roebuck Road, Chessington, Surrey. It states that it is an agent of Plaid Financial Ltd, an authorised payment institution regulated by the FCA, for account information services; this is an agency relationship rather than ownership. Per the record, Funding Alternative Group Ltd is the parent of Funding Cash Advance Ltd and Funding Your Invoice Ltd.
Everything on this page comes from what Funding Alternative publishes itself. We show the date we last checked it, and we do not rate or rank lenders.
What does Funding Alternative offer?
Funding Alternative publishes 3 products for UK businesses. The table above gives the amounts and terms as it states them.
- Business Cash Advance: Fixed repayments, or flexible repayments taking a percentage of receipts plus a minimum weekly amount.
- Merchant Cash Advance: Taken from daily card sales.
Business Cash Advance
An advance of £15,000 to £250,000 over a typical term of 3 to 9 months, for a fixed fee. Repayment is either fixed weekly amounts, or a percentage of incoming sales tracked through bank transactions plus a minimum weekly amount. Personal guarantees are required from all directors and in some cases large shareholders, and an early repayment discount may be available if repaid before the term.
Merchant Cash Advance
Working capital repaid by an agreed percentage taken automatically from daily card sales, typically over around 9 months. Repayments rise and fall with card takings and are not tied to fixed due dates. Businesses need card terminal revenue in their cashflows, and personal guarantees are required from all directors and in some cases large shareholders.
Selective Invoice Financing
The business sells selected invoices to Funding Alternative, which advances about 80% of the invoice value after customer verification (it says the figure can vary). When the customer pays, the business receives the remaining balance less the advance and agreed fees. Facilities go up to £250,000, with personal guarantees from directors and a debenture over the company.
What does Funding Alternative fund?
Funding Alternative says its finance is used for:
- Inventory purchases
- Business expansion
- Seasonal capacity increases
- Working capital
- Unlocking cash tied up in unpaid invoices
Sectors and business types it says it funds:
- Says it is sector agnostic; examples it gives include motor trade, retail, gyms and restaurants
What it says it does not fund:
- Does not lend to businesses outside England, Wales and Scotland
Who can apply to Funding Alternative?
Funding Alternative publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.
- Limited company, sole trader or partnership registered in England, Wales or Scotland.
- Business Cash Advance: average monthly revenue over £25,000.
- Merchant Cash Advance: average monthly revenue over £15,000, with card terminal revenue in cashflows.
- At least one director or shareholder who is a UK homeowner.
- 6 months of company bank statements or Open Banking.
How do you apply to Funding Alternative?
Funding Alternative describes its process like this:
- Submit the minimum information: company name or number, requested amount and intended use.
- Provide six months of company bank statements or Open Banking access.
- Provide homeownership details for at least one director or shareholder.
- Receive an indicative offer, then accept and provide the remaining documentation.
Information it says it asks for:
- Company name or registration number
- Six months of company bank statements or Open Banking access
- Requested advance amount and intended use
- Homeownership details (address and mortgage value)
- Merchant Cash Advance: card terminal supplier and any existing MCA balances
- Invoice Financing: debtor names, insurance limits and invoice audit trail
Every application is subject to status and the lender’s own criteria at the time.
How it works: unsecured business loans
An unsecured business loan is a fixed sum repaid in instalments over an agreed term, without a charge over a specific asset. Most lenders still ask the directors for a personal guarantee, which makes them personally liable if the company cannot repay.
Lenders price each loan on the business’s trading history, turnover and credit profile, so the offer you receive can differ from the published range. Compare the total cost in pounds and the repayment pattern, not only the headline rate: our guide on how to compare business loan lenders shows how.
Points Funding Alternative publishes that are worth knowing:
- Asks for personal guarantees from all directors and in some cases large shareholders.
- Selective Invoice Financing also asks for a debenture over the company.
- Early repayment discount may be available if repaid before the term.
- Describes itself as providing advances with a fixed fee rather than loans with interest.
- Acts as an agent of Plaid Financial Ltd for account information services only.
Security and guarantees
Personal guarantees are required from all directors and in some cases large shareholders. At least one director or shareholder must be a UK homeowner. Selective Invoice Financing also takes a debenture over the company; its FAQ says it takes a debenture in extenuating circumstances for its products generally. An early repayment discount may be available if repaid before the term.
Is Funding Alternative regulated?
Funding Alternative’s site states: “Funding Alternative is an agent of Plaid Financial Ltd., an authorised payment institution regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 (Firm Reference Number: 804718). Plaid provides you with regulated account information services through Funding Alternative as its agent.”
Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.
What are the alternatives to Funding Alternative?
Other providers of unsecured business loans with profiles here include Funding Circle, FW Capital and Got Capital. Each profile uses that lender’s own published terms.
The full list, grouped by product type, is in our directory of UK business lenders.
Applying through a broker
Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.
Sources
- Business Cash Advance, Funding Alternative
- Merchant Cash Advance, Funding Alternative
- Selective Invoice Financing, Funding Alternative
- FAQ, Funding Alternative
- About us, Funding Alternative
- Partner with us, Funding Alternative
Capzy is a credit broker, not a lender. We get paid by the lender. This page is general information, not financial, tax or legal advice. Finance is subject to status, lender criteria and affordability; rates and terms depend on your circumstances.