Earlier this year, research by the Asset Based Finance Association (ABFA), the body representing the asset-based finance industry in the UK, found that British businesses gunning for growth in improving economic conditions were turning away from banks in unprecedented numbers and seeking secured asset loans from alternative lenders instead.

Compared to the level of asset-based finance used by UK businesses in December 2009 – the height of the recession – it’s obvious that a substantial shift in borrowing choice has taken place. Back then, asset-based borrowing amongst SMEs stood at just £14.1 billion. Fast forward to the present, and it’s a massive 38 percent higher.

ABFA Chief Executive Jeff Longhurst pointed to a surge in the use of asset-based lending, which involves borrowing against the value of a business’s assets – anything from inventory to property to machinery and equipment. Longhurst is in little doubt that the new lending models are playing a key part in financing the ongoing recovery.

Businesses were turning to alternative forms of finance like this primarily to fund growth, he said, not to replace the use of overdrafts or term loans. He told SME website “RealBusiness” that a major advantage offered by asset-based finance was the speed with which facilities can be agreed or extended, allowing business which meet the borrowing criteria to gain a vital edge over competitors. He said:

“With other funding products it can take months before you can get finance approved and the funds in place.

“For a business looking to capitalise on a growth opportunity being able to rapidly raise and deploy funds can give you a vital edge over your competitor. Having in place the finance that allows you to move faster than your competitor allows you to fill orders quicker, make quicker hiring decisions, secure those new premises and take market share quicker.”

There is, however, a crucial caveat. Most of the new online platforms that lend to SMEs are at least as fastidious as the banks in requiring the most exacting standards of creditworthiness from SME applicants – standards which many of them are not yet in a position to demonstrate.

This is where cutting edge peer-to-peer lender Unbolted offers an unrivalled alternative. Creditworthiness is irrelevant to our pool of lender-investors; we never subject any of our applicants, whether individuals or SMEs, to intrusive and potentially harmful credit searches. Instead, we’ll draw on the expertise of our many specialist partners to gauge the resale value of a valuable asset owned by an applicant. And with us, you’ll never have to put your home in jeopardy (we don’t accept properties as security). But if you have valuable jewellery or precious metals, a classic car, a high-value musical instrument, a luxury timepiece or handbag, some fine wines, fine art or collectable stamps and coins, we may be able to help.

Your asset will be under the control of Unbolted, looked after in secure storage, for the duration of the loan (usually six months). If you repay us within the term, your asset will be returned. If you’re unable to, we sell the asset at auction, returning any excess above the sum agreed at the outset to the borrower.

And we’re fast: you can usually get an offer of a loan within three hours of uploading a photograph of your asset onto our website.