Starting a brand new ecommerce business can be a very expensive ordeal, with investment in project management systems, photo shoots, management, distribution, and sales teams often running into the hundreds of thousands.
That’s why finding a good business loan for such a project is essential, and with large ecommerce business financing available from a number of providers, we go through what the experts are saying about how best to fund your new online shopping startup.
UK Peer to Peer Financing for Better Business Loan Interest Rates
If you’ve got an inspiring new business idea, then using crowd funding or peer to peer financing can be a fantastic way to do it. This is because people are searching for new and interesting projects to invest their cash into, and so you really get a chance to sell them the dream of your new venture, allowing for a quality investment that you and the investor are both backing to succeed.
You can compare a range of options, and they’re often available at a much better interest rate than most other loan companies.
Compare Peer to Peer Loan Providers
When looking to compare the best interest rates and deals on peer to peer loans, you should focus on the up to date comparison websites dedicated to this sort of thing, and the best that we’ve found are the following:
Popular providers include:
- Crowd Cube (https://www.crowdcube.com/)
- Funding Circle (https://www.fundingcircle.com/uk/)
Getting a Traditional Business Loan
Your other alternative is to look for a more traditional lender such as a high street bank or co-operative that are willing to invest in a new website startup.
The problem with this option is that the main stream lenders are very wary of investing in websites, which is a symptom of the poor UK economy and the .com bubble of the early 2000’s. Therefore the interest rates they can offer you will often be much higher than the alternative peer-to-peer options, making it very difficult for a new business to maintain enough cash flow in its first few years.
You can read more stories of why these companies don’t lend as freely anymore here.
You can browse some of our financial resources here.
You can find out more about our ecommerce product here.