Sorodo’s Co-Founder: Alternative Financing Options ‘Unknown’ Amongst the U.K.’s Small Business Community
Are small businesses across the pond aware of their alternative financing options? Manchester’s Sorodo Limited, a merchant cash advance company, feels that the word has far from spread.
“We still have some way to go, as the product is still fairly unknown to the wider business community,” co-founder Rich Wilcock said via release earlier this month while discussing merchant cash advance alongside other non-traditional avenues. “We spoke to a lot of business owners in 2012 and 2013, and they were understandably frustrated by their situation. Many who were declined for traditional forms of finance by their banks didn’t look any further, which is why it’s so important we get the message out about alternative funding options, such as peer-to-peer lending, cash advances, crowdfunding, unsecured borrowing and so on.”
Wilcock labeled awareness of the merchant cash advance option and other alternatives at the dawn of 2018 as “disappointingly low.”
Typical Sorodo Limited customers include owners of hotels, restaurants, cafes, pubs, clubs, bars, independent shops (including e-commerce stores), convenience stores, beauty salons and garages.
“In 2014, the average independent retailer was struggling to stay open, let alone turn a profit,” said Wilcock. “Many shops, hotels, restaurants and leisure outlets closed down, but we knew this product had the ability to not only keep businesses trading but also to help them grow.”
After promoting the lending alternative and seeing growth in Sorodo’s business, Wilcock believes that there is still significant amount of campaigning left to do. Thus, Sorodo Limited is expanding it’s offerings with a new platform called Capalona.
The newcomer is designed to help U.K. business owners find alternative solutions besides merchant cash advance that may serve their individual needs better.
“The term ‘alternative business finance’ covers a variety of new funding models that allow businesses to access funds that are not readily offered by traditional lenders,” said Wilcock. “These include products such as asset-based lending, invoice finance, venture capital, pension-led funding and many more.”
Capalona, which is currently up and running, is also based in Manchester.Last modified: January 25, 2018