WHAT ARE THE DIFFERENT TYPES OF ALTERNATIVE FINANCE?
Invoice financing is a lending product allowing companies to plug a gap in cash flow as a result of waiting for an outstanding invoice to be paid. There are two aspects of invoice financing; invoice factoring, and invoice discounting.
Invoice factoring is when a company sells its unpaid invoices to a third-party company at a discounted rate. The third-party company then manages the credit control on their behalf, liaising with the client for outstanding payments.
Invoice discounting is a similar process usually applied to companies of a larger nature whereby they remain in control of collecting outstanding payments from customers or clients.
Enness works with a specialist invoice financing partner who can assist clients with maintaining cash flow within their business.
Peer-to-peer (P2P) lending occurs between a business and its ‘peers’. Typically, an investor will invest in a P2P platform, outlining opportunities which they would be willing to consider and the platform will then manage the investment, matching it with borrowers.
Enness works closely with a P2P lender and can put our investor clients in touch with them to discuss opportunities for return.
Private equity is investment into private companies, not trading on the stock exchange. A private equity firm will have preferences in terms of potential investments, usually to align with its own goals and strategies.
Among our extensive panel of lenders, we work with a number of private equity firms, venture capital firms and angel investors who are looking for investment opportunities. On discussing your circumstances, we will put you in touch with the most appropriate lender for you.
Crowd funding connects investors and entrepreneurs for the purposes of raising the funds – usually in small amounts – via an online platform. Entrepreneurs have the opportunity to pitch their business plan to a large group of people who then have the choice whether to invest or not.
The return on crowd funding investment differs to other traditional business capital in that an investor will usually receive goods or services in return for monetary investment. They may also offer a percentage of any profits from future sales.
HOW CAN ENNESS HELP YOU WITH ALTERNATIVE FINANCE?
Enness is a whole of market brokerage with access to an extensive network of lenders, covering a range of traditional and alternative finance institutions.
We understand each investment opportunity will have a unique set of preferred outcomes so a one size fits all approach is not appropriate. As such, we will take the time to discuss your opportunity or investment requirements and put you in touch with the best source of funding – whether that’s an online crowd funding or a P2P investor, or a private equity firm or private investor.