Our Services

Non-Bank Lending

As banks try to recover from the Credit Crunch, the chances are that you are not getting the loan funding you might expect to develop your business. You may find an unwillingness to lend, requests for increased security, higher rates of interest and increased fees.

The days when bank managers had their own credit limits and had in-depth knowledge of their customers have long gone and so you might also find that your bank does not understand your business or the benefits of trying to grow it.

Alderburn Finance can offer a real alternative - non-bank lending. This lending is a growing marketplace that bypasses traditional bank lending and puts the borrower firmly in control. Alderburn has particular expertise in non-bank lending. It engages in this growing marketplace by bringing together investors, including high net worth individuals and pension funds, in syndicates that provide funding directly to businesses. Deals are done quickly in a dynamic marketplace and there is more freedom to structure a deal around individual circumstances.

Usually non-bank lending is an option where traditional lenders are unable to help or where invoice finance or asset finance are not appropriate, for example when something other than hard assets is being financed.

Non-bank lending can also supplement what the banks are able to do to make up a whole package of funding.

At Alderburn Finance, we have developed strong relationships with several non-bank lending platforms, Challenger Banks, Assets/Invoice Financiers, and small syndicate business lenders/angels.

Peer-to-Peer Lending

In recent years there have been fundamental changes to the way all Banks operate, leaving a funding gap which is being met by some innovative solutions. Peer-to-Peer lending (also known as Crowd Funding) is a mechanism where investors lend directly to businesses and it provides a route to finance not always available from traditional providers.

Funds are raised by presenting opportunities to potential investors via an internet platform. Investors join in an On-line Auction where they decide how much they want to bid and at what interest rate. Because each loan is structured as a term loan with a fixed monthly repayment, interest costs can be predicted with certainty; there is no exposure to market fluctuations.

Typically deals have the following features:

  • Term loans up to five years
  • Loans for any purpose
  • Interest rates are fixed (typically 8% - 13%)
  • Monthly repayments of Capital and Interest
  • Borrowers are established businesses
  • Security in the form of Fixed and Floating Charges over company assets and/or Personal Guarantees
  • No penalty for early repayment

We keep ourselves fully up-to-date on the latest developments in the funding market ensuring our knowledge of which lenders are actively seeking business and which lender will look favourably on which proposition, so we don’t waste time talking to the wrong people.

Getting a lender to agree quickly depends on structuring the proposal professionally and then presenting it positively. This is where our expertise comes in. We have access to the right people in each lending organisation, in order to get proposals moving quickly, and can drive the decision-making process, leaving the client free to get on with running his or her business.

Collaborating with the Banks

Alderburn Finance has significant experience in collaborating with client’s existing funders (in particular the banks) for the benefit of all parties.

Non-Bank Funding for Scottish Companies