With the banks no longer lending money in the same volumes as in the past there are now an increasing number of new ways that businesses can raise finance. Some methods of providing finance have been around for a while such as single invoice discounting ( where a provider will advance money on the back of just one, usually large, invoice to a good credit risk debtor ) but new methods are gaining in popularity as bank lending decreases. Asset based lending has grown some 100% since 2007.
A new form of finance has come to the UK from the US which is being called credit card factoring or credit card merchant advances. This is simply an advance on money that the company is expected to take from credit and debit cards in the future. The provider just needs some historical financial information and some references and then they can advance the money. This is set at 1/12th of the takings but could still be invaluable if a pressing bill to HMRC needs to be paid. The money is then recouped for a set fee from the credit card takings. See our page on credit card merchant advances for more details.