Alternative Finance

Businesses, finding it increasingly hard to secure finance from banks, turn to their accountants for advice. But what alternatives can you suggest? The crowdfunding and peer-to-peer finance market is growing rapidly and presents an increasingly attractive option, but with such new products and services, how can you identify the right option for a particular organisation.

In this course, FT journalist Andy Davis explores this rapidly expanding market and shares the very latest information on the crowdfunding and peer-to-peer finance movement. He focuses on crowdfunding platforms in three distinct sectors of the market: business loans, short-term working capital finance and equity fundraising.

Introduction and Background

• What is alternative finance?
• Why is alternative finance important?
• What is the size and potential size of the sector?
• How do P2P and crowd funding platforms work?
• How much can businesses typically raise from these sources?
• Are crowd funding platforms regulated?

Business Loans

• How much can businesses borrow and for how long?
• What security must a borrower provide?
• How is the borrowing rate set?
• Can borrowers use this source of funding if they already have a bank loan or overdraft?
• How does the application process work?
• Can lenders ask for additional information on borrowers?
• What happens if a borrower falls into arrears?

Working Capital

• How do invoice discounting platforms operate?
• What types of working capital finance do these platforms offer?
• How much does this type of finance usually cost?
• What information will a borrower need to provide?
• Do borrowers need their banks’ clearance to use these services?

Equity Capital

• How are the size and price of the share offer set?
• How much can businesses raise in equity capital from this source?
• How does the fundraising process work?
• What information do business owners need to provide?
• What types of business tend to use equity crowd funding platforms?
• How is the ownership structured?