Compare alternative finance options from 80+ UK lenders
Explore non-bank lending options like crowdfunding, invoice finance, and P2P lending. Compare alternative finance solutions with 80+ UK lenders.
What is alternative finance and how does it work?
What is alternative finance?
Alternative finance refers to funding options that operate outside of traditional high street banks. These include crowdfunding, peer-to-peer lending, invoice finance, and merchant cash advances, among others.
It provides a more accessible route to funding for small and medium-sized businesses - especially those with limited credit history, irregular cash flow, or who need faster access to capital.
How does alternative finance work?
Alternative lenders often operate online, using tech-first platforms and alternative credit models. That means applications are usually quicker, with less paperwork, and funding can be available in as little as 24-48 hours.
Repayment structures vary - some are fixed-term, while others (like revenue-based finance) flex based on your turnover. Business credit cards offer revolving credit for everyday expenses.
Many forms of alternative finance are unsecured. However, options like asset finance or secured business loans may require security, such as equipment or property.
Types of alternative finance
Peer-to-peer (P2P) lending
Borrow directly from individual or institutional investors through online platforms. Learn more about peer-to-peer lending
Crowdfunding
Raise capital from a group of people in exchange for equity, interest, or rewards. Learn more about crowdfunding
Invoice finance
Unlock cash tied up in unpaid invoices - includes factoring and discounting options. Learn more about invoice factoring
Merchant cash advance
Receive a lump sum upfront, repaid via a percentage of future card sales. Learn more about merchant cash advances
Revenue-based finance
Repay funding as a share of your business turnover - ideal for fast-growth businesses. Learn more about revenue-based finance
Asset finance
Acquire vehicles, machinery, or equipment without upfront costs. Learn more about asset finance
Business credit cards
Revolving credit for managing short-term business expenses. Learn more about business credit cards
Unsecured business loans
Loans that don’t require collateral - often based on trading history and creditworthiness. Learn more about unsecured business loans
Why choose Funding Options by Tide?
Funding Options by Tide helps UK SMEs find fast, tailored business finance by connecting them with over 80 trusted lenders. Backed by Tide and FCA-regulated, the service is free and easy to use.
Compare 80+ lenders
Access a wide range of trusted lenders: from high street banks to alternative finance providers.
No fees or obligations
Our service is completely free to use. You’re in control of who you borrow from.
Fast, personalised results
Get real-time matches based on your business profile and funding needs.
Expert support when you need it
Our team is here to help — by phone, chat, or email.
How does Funding Options work?
Trusted by over 17,000 customers
Benefits of alternative finance
Faster decisions – Many providers offer funding in 24-48 hours
Flexible repayment terms – Including revenue-based or daily repayments
Accessible criteria – For businesses with poor credit or no assets
Digital-first – Apply online with minimal paperwork
Diverse funding sources – Choose from over 80+ UK lenders
⚠️ Things to consider
Cost of capital
APRs, fees, early repayment charges
Repayment flexibility
Can it flex with your cash flow?
Security required
Is the loan secured or unsecured?
Impact on credit
Some lenders perform hard credit checks
Reputation of the provider
Always review the lender's background and terms
Faqs on alternative finance
Is alternative finance regulated in the UK?
Yes. Many alternative finance providers are regulated by the Financial Conduct Authority (FCA), particularly those offering lending or investment products.
Who uses alternative finance?
Small to medium-sized businesses (SMEs), startups, and companies with limited credit history often turn to alternative finance when traditional loans are hard to access or don’t offer the flexibility they need.
Why choose alternative finance over a bank loan?
Alternative finance may be quicker to arrange, more accessible to businesses with limited credit history, and better suited for flexible or short-term funding needs.
Can I get alternative finance with bad credit?
Yes, some alternative finance providers specialise in supporting businesses with poor credit by focusing on revenue, assets, or invoices instead of credit scores.
How quickly can I get funded with alternative finance?
Many alternative lenders can approve and release funds in as little as 24–48 hours after receiving your application.
How do I compare alternative finance providers?
You can use platforms like Funding Options by Tide to compare over 80 UK lenders in minutes and find funding tailored to your business needs.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Joe Morley
Business Finance Lead
Joe has been helping UK businesses secure the funding they need since 2015. Over the years, he’s supported hundreds of SMEs in accessing millions of pounds for everything from purchasing essential assets to unlocking working capital for day-to-day operations. As Head of Sales at Funding Options, Joe leads a large team of expert Business Finance Specialists dedicated to finding the right solution for every customer. His goal is simple - to make securing finance straightforward, stress free, and tailored to each business’s needs.