Nobody likes being rejected but, when you own your own business you probably through the feeling of being picked last in PE was a thing of the past. Unfortunately, the fear of being overlooked, ignored and ultimately rejected is an all too common feeling for SME owners up and down the country.

Being turned down for a bank loan evokes images of a rather glum looking business man standing in the rain without an umbrella yet many business-owners still consider banks as main source of external funding. However, there’s a range of alternative finance-providers out there if you’ve been turned down for a bank loan.

"It’s about taking the time to know all the options available to you and understanding what is best"

Often businesses wrongly assume that the success rate of applications to alternative funding is low (it tends to be low due to the low number of applications). The fact of the matter is that there are a multitude of finance providers in the market so there is no excuse for failure to find funding.

All it takes is to learn about possible funding options (knowing that your high-street bank isn’t the only option), understand requirements and application processes, select best type of funding, check your credit score and then apply.

It’s about taking the time to know all the options available to you and understanding what is best for you. To help, we’ve outlined a few options for you.

Peer To Peer Lending

This involves a P2P online platform where money can be borrowed from private lenders. The online companies running the platform will typically run personal and credit checks, which must be passed.

Asset Financing

Here you’ll be required to provide securities interest for assets on the balance sheet to obtain money from the lender. This option is suitable if you have a poor credit rating – all that matters is the quality of your assets.

Invoice Finance

If your business setup requires payment to be made to suppliers before you can collect cash from the customer, then invoice financing can be utilised. You’ll receive money from the lender against future invoice payments.

Cash Advance

If you are not concerned about high interest rates and can pay back within a short period of time (4-18 months), then a cash advance is a suitable option. There is no need for a lengthy application process and the money can be obtained in just a few days.

These days just about anyone can finance your business if they have some spare cash

Pension-led Funding

If you have a large pension fund, then utilise it to obtain a commercial loan. It will be secured against the pension fund up to a certain limit.

TAX or VAT-funding

While paying tax is unavoidable you have a chance of choosing when to pay it, if supported by a willing lender

Business Angels

These are individuals who invest personal money, typically in the region of £10-500K. BA’s invest mostly in their area of expertise and can be found via their Associations.

Venture Capital Firms

Once a start-up shows potential for massive growth a venture capital firm will get involved. The funds they put into a new businesses are acquired from individual investors. Here’s a region of funding you’d start considering VCs would be on average of 1-2.5 ml and above. The lowest end VC could start investing is 500K mark.

Crowdfunding

One of the more recent funding options is crowdfunding. This involves showcasing your project or business via an online platform. People who like what you are trying to build will invest. They can invest in some cases for your business equity, but in some for your product and that’s called donation crowdfunding.

Business Grants

A highly attractive type of funding is a business grant, because there is no need to pay anything back. These can be received from corporations, trusts, governmental bodies, other businesses and individuals.

Incubators & Accelerators

These are programs that require a fee to be paid or equity given out. In return you’ll have a comprehensive amount of business support which includes access to funding, expertise, advice, office space and whatever else that’s required to grow your business.

With so many different options available it is enough to make your head spin. It all comes down to what makes the most sense for your business.

The Business Funding Show is taking place in Old Billingsgate, London on 2nd and 3rd February 2016.The event will host around 120 exhibitors spread across three exhibiting areas: Lending, Investment, and Growth Support.

All attendees to the event will have ample opportunity to liaise with representatives of various leading financial institutions to discuss their funding options as well as celebrated entrepreneurs and investors such as Richard Reed (Innocent), Charlie Mullins (Pimlico Plumbers), Lord Bilimoria (Cobra Beer), Bill Morrow and many others.