Business Loans Without Banks

The Advantage Early Growth Fund is now fully invested after 6 years and investments in 61 companies alongside over 510 business angel investors.  As the fund enters a new phase where exits are a top priority the AEGF team have come up with a new funding initiative “The Business Loan Network”. 

They believe that the “loan gap” is now more serious than the “equity gap” and will be operating the Business Loan Network nationally in a similar way to Business Angel Networks, putting together syndicates of investors to make secured loans in the range £30k to £3m.  Whilst the loans will not attract EIS tax relief they should be much lower risk than equity and provide regular monthly income.  Loans will be repayable in fixed monthly instalments over periods ranging from 6 months to 7 years with 3-5 years being the most typical.  Loans are offered by an online auction and interest rates available are predicted to range from 6% to about 12% depending on the risks involved. Membership for lenders is free and lenders make all their own lending decisions. 

The team are seeking to work with other BBAA Members in finding and vetting suitable lending opportunities.

The Business Loan Network will be launched on September 28^th at the 6th AEGF Conference in Birmingham.  There is more information about the Business Loan Network at www.thincats.com and you can request an invitation to the AEGF Conference from malcolm@aegf.co.uk