Funding Alternative Group Reviews

Funding Alternative Group is a UK-based financial brokerage that connects small and medium-sized enterprises (SMEs) with alternative funding solutions. It operates as a broker rather than a direct lender, matching businesses with a panel of lenders for a range of finance products. The company is authorised and regulated by the Financial Conduct Authority (FCA) for credit broking activities. Its service focuses on speed, flexibility, and accessibility, particularly for businesses that may not qualify for traditional bank loans.

Key features

Funding Alternative Group offers a brokerage service with access to a wide panel of lenders, which may increase approval chances for businesses with varying profiles. A dedicated account manager is assigned to each client, and the application process includes quick eligibility checks. There are no upfront fees for quotations or applications. However, as a broker, Funding Alternative Group adds an intermediary layer, and broker fees of 3-5% of the loan amount can apply upon successful funding. The quality of service depends on the panel lenders selected.

• Access to a panel of 50+ UK lenders including high street banks and alternative financiers
• Free initial consultation and eligibility check
• Dedicated account manager throughout the process
• Online application portal for document upload and status tracking
• No upfront fees for applications or quotations
• Support for businesses with poor credit history (sub-prime lenders available)
• Expert guidance on documentation and lender requirements
• Broker fees of 3-5% may apply upon successful funding
• Highest rates offered by panel lenders may be expensive
• Not a direct funding source; businesses rely on third-party lenders

Eligibility

Eligibility criteria vary depending on the specific product and lender. Some products, such as startup loans, have no minimum trading period, while most products require at least 6 months of trading history. Minimum annual turnover is not specified publicly but may be required by certain lenders (e.g., £100,000 for invoice finance). Certain lenders may exclude sectors such as gambling, adult entertainment, firearms, and high-risk industries. Geographic coverage includes England, Wales, Scotland, and Northern Ireland.

Loan options

Funding Alternative Group offers access to a range of finance products through its panel of lenders. The following loan types are available, each with its own amounts, terms, rates, and fees:

• Business Term Loan: £5,000 to £500,000; terms from 3 months to 5 years; representative APR 7.4% to 39.9%; arrangement fee 3-5% of loan amount; unsecured options available for smaller amounts; personal guarantee often required.
• Invoice Finance: £10,000 to £2,000,000; ongoing facility; discount rate 1.5% to 3% per 30 days plus servicing fee 0.5% to 1.5% of turnover; setup fee up to £500; minimum 6 months trading and annual turnover of £100,000 preferred; invoices act as security.
• Asset Finance: £1,000 to £500,000; terms 12 months to 5 years; representative APR 6.9% to 29.9%; arrangement fee 2-5% of asset value; 100% financing available for new equipment; asset used as security.
• Bridging Finance: £50,000 to £5,000,000; terms 1 month to 24 months; 0.5% to 1.5% per month (6% to 18% APR equivalent); arrangement fee 1.5-2% of loan amount; property as security; fast funding often within 7-14 days.
• Development Finance: £250,000 to £10,000,000; terms 6 to 36 months; 0.6% to 1.2% per month (7.2% to 14.4% APR equivalent); arrangement fee 2% of loan; first charge on development site; requires planning permission and developer experience.
• Startup Business Loan: £500 to £50,000; terms 3 months to 3 years; representative APR 15% to 49.9%; arrangement fee 3-5% of loan amount; no minimum trading history required; business plan and personal credit check needed.
• Merchant Cash Advance: £5,000 to £500,000; terms 3 to 18 months; factor rate 1.2 to 1.5; repayments via daily or weekly percentage of card sales; minimum 3 months card sales history; no personal guarantee typically required for smaller advances.
• Trade Finance: £25,000 to £1,000,000; terms 30 to 180 days; 1.5% to 3% per 30 days plus arrangement fee 1-2% of facility; minimum 12 months trading history and annual turnover of £500,000; first charge over goods financed.

How to apply

The application process begins with an online enquiry form or a phone consultation. Initial eligibility checks are typically completed within 24 hours, and a full lender decision usually takes 2 to 5 business days. After approval, funds may be released within 3 to 14 days depending on the product and lender due diligence. Required documents include:

• Bank statements (last 3-6 months)
• Business plan (for startups)
• Cash flow forecasts
• Proof of ID for directors (passport/driving licence)
• Proof of address (utility bill)
• Company registration documents
• Recent management accounts (if available)
• Tax returns (if applicable)

Funding Agent's view

Funding Alternative Group operates as a credit broker offering UK SMEs access to a diverse range of alternative finance products, including term loans, invoice finance, asset finance, bridging finance, and startup funding. Its strength lies in matching businesses with lenders suited to their profile, including those with poor credit or limited trading history. However, broker fees of 3-5% of the loan amount add to overall costs, and the highest rates from panel lenders can be expensive. The service may be relevant for businesses that have been rejected by traditional banks or need bespoke, quick, or niche funding solutions. Borrowers should carefully consider the total cost of borrowing, including broker fees and lender charges, and compare alternatives before proceeding.