When we say that the finance world is vast, we’re not being flippant. Finance is an ever-growing world, and new options to find the loan you need are being created and tested constantly. With such a vast array of ever-changing options to get the funds you need, it’s perhaps not surprising that most businesses only really know of a few. Whilst everyone knows that a commercial mortgage is an option, how much do you know about the EFG? Crowdfunding? SSAS?
Well, if you’re in the dark about those, then today’s your lucky day, because in this blog we’re out to explain them in brief. So what exactly are these lesser-known types of finance?
The EFG Scheme
The Enterprise Finance Guarantee Scheme is a government scheme dedicated to helping businesses without security to offer find finance. Through the EFG scheme, punters apply to a restricted set of banks with a government-backed guarantee against the loan. This helps to mitigate the traditional risk of an unsecured loan for the lender, and provide opportunities for viable businesses that would otherwise struggle to find finance.
With the rise of Kickstarter, GoFundMe and other such platforms, most people have now heard of crowdfunding. However, what’s less-known is that it’s an option for business loans too. Various different platforms exist that allow interested investors to all contribute a portion of a loan towards a greater whole for a project.
Also known as SIPP and SSAS finance, this type of finance utilises a particular kind of pension to maximise the borrowing potential and tax benefits of purchasing commercial property through it. It’s quite a different option to many others, but no less viable!
We’re on a mission here at ASC to bring the wide variety of options available to you in the finance world to light. That’s why we’ve started producing our ASC Infographics to break them down in a simple but detailed manner. In our first three infographics, you’ll find the three types of finance above broken down in more detail, and there are plenty more to come to help you with all the different aspects of the finance process!