Alternative finance for small businesses
Wednesday 10th September 2025
Last updated: 15th January 2026
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Cash flow challenge: Small businesses struggling to secure traditional bank loans or face long approval times, leaving them short of working capital when opportunities arise.
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Perfect for: Small businesses and startups looking for flexible, non-bank funding options to improve cash flow, invest in growth, or manage day-to-day operations.
Novuna helps small businesses access a range of alternative finance solutions either through our award-winning in-house products or by comparing providers to find the right fit for your business.
What is alternative finance?
Alternative finance refers to funding solutions offered outside traditional banks designed to help businesses access capital more quickly and flexibly.
It includes a wide range of products that support different business needs, from managing cash flow to financing expansion or equipment purchases.
Common types of alternative finance include:
- Invoice finance: Release funds tied up in unpaid invoices.
- Asset finance: Purchase or lease essential business equipment.
- Merchant cash advances: Repay funding flexibly through card sales.
- Crowdfunding: Raise capital from multiple investors online.
- Peer-to-peer lending: Borrow directly from individuals or networks.
Why alternative finance matters
Access to finance is crucial for small business growth. When traditional banks tighten lending criteria, alternative finance offers a practical, fast-moving alternative.
It can help small businesses:
- Bridge cash flow gaps caused by late payments.
- Invest in growth through new equipment or staff.
- Maintain operations during seasonal fluctuations.
- Secure funding without lengthy credit checks or collateral.
With tailored repayment structures and faster approvals, alternative finance helps small businesses stay agile, especially in fast-changing markets.
Benefits of alternative finance
- Fast decisions: Get approved and funded within 24–48 hours.
- Flexible options: Choose from loans, invoice finance, or merchant-based funding.
- Accessible: Easier to qualify for than traditional bank loans.
- No collateral needed: Many facilities are unsecured.
- Tailored to your business: Match repayments to cash flow.
Alternative finance vs traditional bank loans
| Feature | Alternative Finance |
Bank Loan |
| Approval speed | 1–3 days | Often weeks |
| Collateral required | Usually none | Commonly required |
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Eligibility |
Flexible for SMEs | Strict criteria |
|
Repayment terms |
Tailored to cash flow | Fixed |
Popular alternative finance options for small businesses
Access up to 90% of your invoice value immediately, improving cash flow while you wait for clients to pay.
Spread the cost of vehicles, machinery, or technology over time without large upfront costs.
Receive a cash lump sum and repay it flexibly through a percentage of future card sales, ideal for retail or hospitality businesses.
Choosing the right alternative finance solution
The best option depends on your business goals:
- Choose invoice finance to solve late payment challenges.
- Choose asset finance to invest in equipment or technology.
- Choose a merchant cash advance for flexible, turnover-linked repayments.
- Choose a working capital loan to fund everyday operations.
Our experts can help you identify the most suitable finance option for your business needs.
How Novuna Business Cash Flow can help
At Novuna Business Cash Flow, we understand that small businesses need more than funding - they need flexibility, clarity, and support.
Speak to our experts today to help you get a great fit for your situation.