Leading the way in alternative funding

Although historically low interest rates would ordinarily encourage leveraged business expansion, the message we most frequently hear from the corporate community is that access to traditional lending remains, at best, restricted.  In some cases the amount of funding on offer falls so far short of business requirements that expansion plans have to remain on hold and opportunities are missed.

This environment has seen a surge of alternative funding vehicles.  Grabbing the financial headlines is “crowdfunding”, a collective term where a project is funded by numerous investors offering a relatively small amount.  Still in its infancy, this type of finance is believed to be worth over £350mn already, and is now being watched by the Financial Conduct Authority.

Fuelling the rise of alternative funding schemes is widespread investor frustration with historically low interest rates.  With few signs that any monetary tightening is imminent, the prospect of accessing corporate debt markets is clearly attractive to the right investor with the right risk profile.

Tolhurst Fisher LLP has been involved with a number of recent transactions where private individuals have funded corporate projects, either entirely, or to bridge a gap in existing funding lines.  Whether we are acting for the borrower or lender, we can advise on the most appropriate security structure and lending documentation, often smoothing over complexities and in short timeframes.

If you are in the process of investing in a business, or if you are receiving external investment, call Tolhurst Fisher’s corporate finance specialist Edward Garston on 01245 216100 to discuss turning your proposal into reality.