Funding Options connects UK SMEs with numerous lenders. Understanding their process and general eligibility helps businesses navigate the platform effectively.
General Eligibility to Use Funding Options
While specific lender criteria vary, businesses generally need to meet these conditions to effectively use the Funding Options platform:
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UK-Based Business: Your business must be registered and operating primarily within the United Kingdom.
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Trading History: Most lenders on the panel require a minimum trading history, often at least 12 months, although some options exist for newer businesses. A 2+ year history typically opens up more possibilities.
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Turnover Level: While thresholds vary by lender and product, having a demonstrable annual turnover (e.g., £30,000+) generally increases the range of available options.
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Business Structure: The platform caters primarily to Limited Companies and LLPs, but options may exist for Sole Traders and Partnerships depending on the specific funding need.
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Funding Purpose: You need a clear business reason for seeking finance (e.g., working capital, expansion, asset purchase, bridging finance).
Information Needed for the Platform:
To effectively match you with lenders, Funding Options will typically ask for:
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Basic Company Information: Registered name, company number, address, industry sector.
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Funding Requirements: How much finance you need, the preferred term, and the specific purpose of the funds.
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Financial Overview: Key financial details like annual turnover, net profit/loss, and potentially information about assets or existing debts.
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Director Details: Basic information about the company directors.
Note: While Funding Options facilitates the initial matching, individual lenders will have their own specific documentation requirements if you proceed with a full application (e.g., detailed accounts, bank statements, business plans).
How the Funding Options Process Works
Using the Funding Options marketplace involves these key steps:
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1. Online Enquiry: Submit your business details and funding requirements through their secure online form. This initial step does not impact your credit score.
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2. Tech-Based Matching: Funding Options' platform instantly analyzes your information and matches it against the criteria of over 120 lenders on their panel.
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3. Review Potential Options: You'll typically see a list of potential finance options and lenders that match your needs, often with indicative rates and terms, within minutes.
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4. Specialist Consultation: A dedicated Business Finance Specialist will usually contact you to discuss the options, understand your needs further, and answer any questions.
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5. Proceed with Lender: If you choose to proceed with a specific lender, Funding Options will facilitate the introduction and support you through the lender's full application and underwriting process.
Types of Finance Available
Funding Options provides access to a diverse range of funding types, including:
- Working Capital Loans
- Business Expansion Loans
- Asset Finance (Leasing/Hire Purchase)
- Invoice Finance (Factoring/Discounting)
- Revolving Credit Facilities
- Merchant Cash Advances
- Commercial Mortgages
- Bridging Loans
- VAT & Tax Loans
- Recovery Loan Scheme (RLS) facilities (when available)
Who Should Use Funding Options?
This platform is particularly beneficial for:
SMEs seeking market comparison:
Businesses that want to efficiently compare multiple funding offers without approaching numerous lenders individually.
Learn more: How to compare business loan offers
Businesses exploring alternative finance:
Companies looking beyond traditional bank loans to find specialist or fintech lenders that might offer more suitable or flexible terms.
Learn more: The rise of alternative lending for SMEs
Time-constrained business owners:
The platform significantly reduces the time spent researching and applying for finance, allowing owners to focus on running their business.
Learn more: Searching for business finance efficiently
Tips for Using Funding Options Effectively
To maximize your success with the platform:
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Be Clear About Your Needs: Have a precise understanding of how much funding you require, for what purpose, and over what timeframe.
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Have Financials Ready: Although not always needed for the initial match, having recent accounts and bank statements readily available will speed up the process if you decide to proceed with a lender.
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Engage with the Specialist: Utilize the expertise of the assigned Business Finance Specialist to understand the nuances of different offers and products.
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Review Offers Carefully: Compare not just the headline rate but also fees, terms, security requirements, and repayment flexibility across different lender offers.
