Finance: Alternative Ways of Raising Money
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Finance Alternatives

Finance: there are many alternatives to taking out a loan

Other ways to raise finance

When you are seeking to raise finance, there are a number of alternatives to conventional loans and mortgages. This page outlines some of the options that fall in three broad areas:

Other forms of finance borrowing

All forms of finance borrowing involve you accumulating additional debt, which you have to repay. Before you take out a conventional loan or mortgage, consider some of these alternatives:

Shared ownership

"Shared ownership" is normally used in house purchases or businesses. However, it can be used for almost anything where an expense and asset can be shared amongst a group of people: a luxury/sports car, a caravan, etc..

In shared ownership, you are not accumulating as much debt because you only have to pay for your share, not the whole value of the asset. However, the other person or organisation takes a share of an asset, of which you have part ownership, thereby taking a share of any income derived from that asset, or a share of the proceeds when you sell it.

In some cases, shared ownership also includes a share of the use of the asset. If you share ownership of a car or caravan with friends, then it is normal for you to share its' use throughout the year. However, if you share ownership of a house with a housing association, you usually have exclusive use of the house.

Types of shared ownership include:

"Free" funding

Finally, there are some sources of funding where you can get money 'for free'. There are usually criteria used to decide if you qualify, and often the money is provided on certain conditions. Examples of free sources of finance include:

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