Most businesses require adequate capital to operate effectively, support growth and achieve sustainable profitability. Traditionally, this funding is sourced through private investors, bank loans or approved overdraft facilities.
However, there are several alternative funding options that may also be appropriate, depending on your business model and objectives.
Alternative funding options:
- Reward-based crowdfunding: Reward-based crowdfunding allows businesses to raise funds by pre-selling products or offering tiered incentives to a broad online audience. Platforms such as Kickstarter enable access to upfront capital without taking on debt or relinquishing equity. This approach can also assist in validating market demand and building early customer engagement prior to a full product launch.
- Government and corporate grants: Grants provide non-dilutive funding that does not require repayment or equity participation. Funding opportunities are commonly available through government programs, non-government organisations and corporate initiatives, particularly for projects focused on innovation, sustainability or social impact. While the application process is competitive and documentation requirements are stringent, successful grants can provide valuable funding for research, development or targeted expansion activities.
- Invoice factoring: For businesses operating on a business-to-business basis with extended payment terms, invoice factoring may improve cash flow. This arrangement involves selling outstanding invoices to a third party at a discount, providing immediate access to cash rather than waiting 30 to 90 days for customer payment. Invoice factoring effectively converts accounts receivable into working capital.
If you are seeking to strengthen your capital position, our team can assist you in identifying and accessing appropriate funding options aligned with your business goals.
