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The time will come when even the most profitable of businesses need finance. This could be to complete a takeover, expand or introduce new product lines.

Yet traditional financial institutions can be very protective, and your company may need to look at different methods. In this article, we discuss three viable alternative financing methods for your business.

Crowdfunding

Crowdfunding has been around for some time now, in one form or another. It involves raising small donations from a large pool of people, which is then used to fund a venture. In return, the people who have invested usually get something back in the form of a product or service. While it is a way for artists and creators to make revenue, it has recently been widely accepted into the business world.

The concept came into its own after the financial crash of 2008 and is a truly digital medium. By spreading the word on social media and the internet, you can leverage a global interest in products. It is very similar to buying shares in a company, except buyers may get something other than profit such as a final product.

Online racehorse syndicates are prime examples of companies that have shifted to this model. Once a domain of the wealthy, racehorse shares can now be accessed from a range of price entry points. Digital infrastructure means owners don’t have to be in the UK but can come from across the globe. They buy into the horse, then much like a crowdfunding model, then share the profit made.

Invoice Factoring

Invoice factoring is a way to improve cash flow and add stability by selling your outstanding invoices to a third party. When you invoice for goods or services, the ones that have not been paid can create a backlog. A company will give you the bulk of the amount outstanding when it buys them from you, usually around 80% to 90%. The company will then pay you the rest of the amount and ask for their fee once payment is gained in full.

It is only a good method of getting money if you have a lot of outstanding invoices. If your cash flow is being hampered because of this, it prevents you from having to chase them all up. It is helpful for short-term bridging if you need your invoices paid and is much cheaper than a loan. However, it does have disadvantages, particularly if the customers do not pay and you lose money. Many of them may also not be happy with you selling invoices to a third party.

Equipment Financing

Equipment financing is a good choice if you want a loan to buy machinery or equipment. You then pay for it through monthly instalments, much like a traditional finance agreement. The equipment is used as security, so if you don’t pay they will take it back. It is used by many companies that need large items, such as construction and agriculture, but can be used by other types of companies.

These are all quite varied methods but one should work for your company. They often have better interest rates than bank loans, which can have high interest if you have been denied access to them before. Check your finances, see how much you need and what will be the best option for your business.

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Three Viable Alternative Business Financing Methods

JCB, the renowned Staffordshire-based manufacturer of heavy machinery, has reported a significant surge in profits despite a global slowdown in the machinery sector.

The company posted a 44% increase in pre-tax profits, reaching £806 million last year, up from £558 million in 2022. Revenue also saw an impressive 14% rise, totalling £6.5 billion, as machine sales soared to 123,228 units, compared to 105,148 the previous year.

While the global construction and agricultural machinery market contracted by 4.3%, JCB defied the trend and remained debt-free, marking it as one of the UK’s top-performing manufacturers. The company’s growth was particularly strong in North America, its largest market, and India, while it gained market share in the UK despite a flat performance domestically.

Graeme Macdonald, JCB’s CEO, acknowledged challenging conditions in the UK and Europe, particularly in Germany, where economic activity had sharply declined. The slowdown in UK housebuilding had also affected machine utilisation rates. However, the company’s focus on innovation, including its new JCB Pothole Pro and ongoing development of hydrogen combustion engines, has positioned it for future growth.

Founded in 1945, JCB is chaired by Lord Bamford and employs 15,000 people globally, with manufacturing operations across four continents.

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JCB boosts profits despite global market downturn

GMB, one of the UK’s largest trade unions, is urging the government to favour businesses that recognise trade unions when awarding public contracts.

The call comes after revelations that Amazon secured £1 billion in government contracts despite allegations of “union-busting” practices.

At the Labour Party conference today, GMB will push for companies that recognise trade unions and allow unions to engage with their workers on recognition to receive preferential treatment in public procurement processes.

This follows a narrowly missed vote at Amazon’s Coventry distribution centre in July, where workers came within 28 votes of becoming the first site outside the US to compel Amazon to negotiate union terms. GMB is now mounting a legal challenge against Amazon, accusing the company of pressuring employees to revoke their union membership, making it harder to reach the threshold for union recognition. Amazon has denied the claims.

Most of the £1.04 billion in contracts awarded to Amazon last year were for cloud services, according to data from Tussell, analysed by GMB. Gary Smith, GMB’s general secretary, stated that if Amazon is to continue receiving such lucrative government contracts, it must start treating its workers with respect, which includes fair pay and better working conditions.

The Labour government has pledged to simplify union recognition procedures and give workers more rights, aiming to create a more balanced power dynamic between employers and unions. Current rules prevent unions from reapplying for statutory recognition for three years if they fail to meet the required vote threshold.

Amazon responded by saying that employees have always had the choice to join or not join a union and that direct engagement with workers is a key part of the company’s culture.

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GMB calls for government to prioritise union-friendly firms in public contracts

The pace of economic growth in the UK slowed in September, as concerns about the government’s upcoming budget weighed on business activity, according to a preliminary estimate from the widely tracked PMI (Purchasing Managers’ Index).

The UK PMI “flash” composite output index, which measures business activity in both the services and manufacturing sectors, slipped to 52.9 in September from 53.8 in August, falling short of the consensus forecast of 53.5. Although the figure remains above the 50-point threshold, indicating continued growth, it reflects a deceleration in the pace of recovery.

The PMI, compiled by S&P Global from a survey of 1,300 firms, highlighted that businesses are increasingly adopting a “wait and see” approach in the lead-up to Chancellor Rachel Reeves’ budget announcement on October 30. Some companies have paused investment and recruitment decisions until fiscal policies are clarified.

Chris Williamson, chief economist at S&P Global Market Intelligence, noted that while business optimism had risen, uncertainty about the budget was “jangling nerves,” particularly in the manufacturing sector. “Investment plans have been put on hold, and hiring has slowed as businesses await clarity on government policies, especially taxation,” he said.

Both services and manufacturing sectors experienced a slower pace of growth than in August, with new business tempered by fragile client confidence and a reduction in inventory levels. However, Williamson was optimistic, stating that the data suggested a “soft landing” for the UK economy and that inflation pressures appeared to be easing without triggering a downturn.

While costs faced by businesses rose in September, breaking a 45-month low recorded in August, the rate at which companies raised prices was the slowest since February 2021, hinting that inflationary pressures may be under control.

Despite the slowdown, Alex Kerr from Capital Economics said the dip in the PMI was not indicative of a looming downturn. He expects the Bank of England to make one more cut to the base rate this year, following the reduction from 5.25% to 5% in August, with further cuts expected in 2024.

The final PMI report, based on more complete data, may revise these initial estimates.

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UK economic growth slows amid uncertainty over upcoming budget

Trinny Woodall’s beauty brand, Trinny London, has secured a £15 million funding boost from Aurelius Finance Company (AFC), a private debt provider, as part of its ambitious growth strategy.

Founded in 2017, Trinny London has grown into a successful direct-to-consumer business, specialising in premium skincare and make-up. This fresh injection of capital will support the company’s expansion plans, including the recent launch of its first standalone retail store on London’s Kings Road.

The deal with AFC, a division of the international investment firm Aurelius, is expected to be officially announced in the coming days, according to industry insiders.

In addition to its online presence, Trinny London products are sold in Liberty London and select locations across Australia and the US. The brand’s valuation was estimated by Forbes in 2021 to be around £180 million.

Neither Trinny London nor AFC have commented on the deal.

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Trinny London secures £15m growth funding to fuel expansion plans

Landlords will be banned from renting out properties that fail to meet minimum energy efficiency standards by 2030, according to Ed Miliband, Labour’s energy secretary, who will announce the policy at the Labour Party conference on Monday.

Under the proposed legislation, all rented homes must achieve at least a grade C on their Energy Performance Certificate (EPC), a move set to affect millions of privately rented properties. Landlords could face costs of up to £10,000 per property on upgrades such as insulation, solar panels, or heat pumps to meet the new standards.

The Conservatives had originally planned to implement similar measures by 2028 but scrapped the deadline under former Prime Minister Rishi Sunak, citing the financial burden on landlords. Labour’s reinstated policy offers an additional two years for compliance but is expected to reignite tensions with property owners, with estimated costs totalling around £25 billion.

“We all know that the poorest people in our country often live in cold, draughty homes,” Miliband is expected to say. “It is a Tory outrage. This government will not tolerate this injustice, and we will end it.”

The new regulations will also apply to council housing, requiring local authorities to upgrade their housing stock—a move that could entail significant public expenditure. Labour sources indicate they are prepared to confront potential pushback to achieve their green objectives.

The announcement comes alongside Labour’s pledge to end no-fault evictions and introduce a range of pro-tenant reforms. While these measures have been welcomed by housing campaigners, they have raised concerns among landlords about the viability of remaining in the rental market.

A consultation is anticipated later this year, likely including a cap on the amount landlords must spend on property upgrades, expected to be around £10,000—consistent with previous proposals. Landlords will be eligible for assistance from Labour’s £6 billion home insulation package, although specific support details have yet to be outlined.

Approximately 2.9 million privately rented homes currently have energy efficiency ratings below grade C. Despite improvements in recent years, about half of the energy assessments conducted on rented properties last year did not meet the proposed standard.

Michael Gove, the previous housing secretary, had expressed reservations about accelerating energy efficiency requirements, stating that it would impose significant financial strain on landlords. “We’re asking too much too quickly,” he said last year.

Ed Miliband will emphasise the importance of the measures for improving living conditions: “Warmer homes, lower bills, over one million people lifted out of fuel poverty. That’s the difference a Labour government makes.”

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Landlords face ban on renting energy-inefficient homes under labour’s new policy

Rightmove is set to consider a third £6.1 billion bid from Melbourne-based Rea Group after rejecting two previous offers.

The latest offer from Rea Group values the UK property platform at 770p per share, comprising 341p in cash and 0.0422 new Rea shares. Rightmove’s chairman, Andrew Fisher, confirmed that the board will carefully evaluate the revised proposal in consultation with financial advisers.

Earlier bids were dismissed by Rightmove as “opportunistic” and undervaluing the company’s potential. Despite this, the latest offer has boosted Rightmove’s stock, with shares climbing 2.6%, or 17½p, to 692p.

Rea Group, 61% owned by News Corp, has expressed its willingness to engage with Rightmove’s board immediately. The Australian firm is also planning a secondary listing on the London Stock Exchange to complement its current listing on the Australian Securities Exchange.

Rightmove dominates the UK house search market, holding an 86% share and boasting high profit margins. However, its shares have underperformed over the past year due to fears of rising competition from OnTheMarket, which was acquired by CoStar in a £99 million deal.

Rea has until September 30 at 5pm to either make a firm offer or walk away under the UK’s takeover code.

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Rightmove weighs third takeover offer from Australian property giant Rea Group

UK hospitality businesses, including pubs and restaurants, are being warned to ensure compliance with new tipping laws set to take effect from October 1st.

Lynne Blakey, director at wealth management and advisory firm Evelyn Partners, is advising employers to prepare for the changes introduced by the Employment (Allocation of Tips) Act. This legislation mandates that employers distribute 100 per cent of tips and service charges to staff without deductions.

Blakey, who has first-hand experience in the hospitality sector from her role as a former finance director at The Newt in Somerset, stressed that many businesses remain unprepared for the legal shift. “The new rules require tips to be distributed transparently and fairly, at the location where they were earned, within a set timeframe. This will affect employers who have previously held back tips or pooled them across multiple venues,” she explained.

The legislation also requires businesses to establish a formal written policy outlining how tips are managed and distributed, and to maintain accurate records. Employers must ensure fair tip allocation across all staff, including zero-hours and agency workers, who now have the right to request information on their share of tips if they suspect discrepancies.

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Hospitality businesses urged to act on new tipping regulations ahead of October deadline

As many as 4 million homes could be constructed on green belt land under Labour’s proposed planning reforms, according to analysis from property data firm LandTech.

The Housing Secretary, Angela Rayner, is pushing for a radical overhaul of the National Planning Policy Framework (NPPF), which could release significant amounts of green belt land for housing development, especially across London and the South East.

Ms Rayner’s vision to unlock “grey belt” land—previously considered unsuitable for development—forms part of Labour’s pledge to build 1.5 million homes within five years. However, recent findings suggest the scope of the reforms may far exceed expectations, potentially opening up 150,000 hectares of land for up to 4 million new homes.

LandTech’s analysis found that areas such as East Surrey and Orpington could see significant growth, with 115,000 and 89,000 new homes respectively. The North West, with the largest share of potential grey belt land, could accommodate as many as 801,000 new homes. Meanwhile, London and the South East have capacity for 275,000 and 523,000 homes on green belt land.

Harry Quartermain, head of research at LandTech, remarked, “It’s radical because they have made it clear that there are circumstances in which development on the green belt is no longer inappropriate.” He highlighted Labour’s redefinition of grey belt land, which includes not only previously developed sites but also land that contributes minimally to green belt objectives, such as preventing urban sprawl.

Labour’s reforms are designed to encourage sustainable development, with local authorities able to consider green belt development if they cannot meet housing targets with their current land pipelines.

While the property sector has warned that Labour’s goal of building 1.5 million homes within five years may be overly ambitious, these changes aim to lay the groundwork for long-term growth well beyond this parliamentary term. Simon Coop, senior director at Lichfield planning consultants, said, “The housing crisis will not be fixed in five years, it needs a long-term strategy.”

A spokesman for the Ministry of Housing, Communities and Local Government responded: “We remain committed to the protection of the Green Belt… development will only be allowed where there is a real need and will not come at the expense of the environment.”

With green belt reform at the heart of Labour’s housing strategy, the potential impact on both urban expansion and rural landscapes is likely to spark ongoing debate.

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Up to 4 million homes could be built on green belt under Rayner’s planning overhaul

Optimism among the UK’s SMEs has risen for the third consecutive year, according to new research from American Express.

Nearly 70% of business leaders are confident about their future, up from 67% in 2023 and 65% in 2022. The biggest boost in sentiment came from micro enterprises (1-9 employees), where confidence grew from 62% last year to 67% in 2024.

The annual Barometer survey, conducted in collaboration with Small Business Saturday UK, included responses from 1,000 SME decision-makers and sole traders. It revealed that nearly three-quarters (71%) of SMEs believe their business is in good shape — a 5-point increase since 2022.

This rise in confidence is leading to growth-focused strategies. Over half (52%) of SMEs plan to invest more in their business over the next year, with a strong focus on improving customer engagement. More than half (54%) aim to enhance communication with customers, 42% plan to offer additional services, and 33% are set to introduce more special offers.

Interestingly, SMEs believe that customers are now less driven by price when making purchasing decisions, with only 51% of respondents citing price as the main factor, down from 57% in 2023.

Looking ahead, optimism continues, with 57% of businesses expecting stronger sales in the fourth quarter of 2024 compared to the same period in previous years.

Amanda Salt, Vice President of Small & Medium Enterprises at American Express, said: “It’s incredibly positive that more SME businesses are feeling confident about the future. While it remains a challenging landscape, business owners continue to show remarkable resilience as they focus on growth and delivering for their customers.”

Michelle Ovens, Director of Small Business Saturday UK, echoed this sentiment, highlighting the importance of small businesses in driving both local communities and the UK economy forward.

AI is also set to play a significant role in SME growth. Almost half (45%) of respondents plan to adopt AI solutions over the next year, with medium-sized businesses leading the way (64%). AI is being utilised for a variety of purposes, including improving marketing (49%), content development (49%), customer service (36%), and making accounting processes more efficient (34%).

With strong signs of growth and an increasing interest in AI, UK SMEs are positioning themselves to thrive in a challenging but opportunity-filled market.

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UK SMEs remain optimistic, with growth plans driven by AI and customer focus