Explore alternative business lenders

Alternative business lenders

A bank loan might not be an option for your business, but you could still get funding for your next step. See how community lenders could support your business.

More ways to finance your business

If we’re not able to lend to your business right now, we can help you find alternative funding from specialist responsible finance providers in your local area. These lenders are known as Community Development Finance Institutions (CDFIs) and could offer you a loan even if you don’t qualify for lending from a mainstream bank.

Understanding Community Development Finance Institutions (CDFIs)

 

What are CDFIs?

CDFIs support businesses and organisations that are already active, looking for a loan and can make repayments.

They use their own lending criteria to make decisions, which means they may be able to support businesses that aren’t able to borrow from a mainstream bank right now.

CDFIs have existed in the UK since the 1970s, and there are around 50 CDFIs across the country who lend to thousands of businesses each year.

 

What do CDFIs offer?

  • Flexible funding over £25,000 and up to £250,000.
  • Loans for growth, investment, working capital, cashflow support or to refinance higher-cost debt.
  • A way to build your credit history so you’re more likely to successfully borrow from a mainstream bank in the future. 
  • Support with your CDFI lending application and one-to-one business guidance.

Just so you know, CDFIs can’t offer commercial mortgages or loans for property investment.

 

Who can apply for a CDFI loan?

Most businesses and social enterprises can apply for a loan from a CDFI.


Generally, you’ll need to:

  • verify how long your business has been trading
  • show your business can repay the loan
  • have no outstanding County Court Judgements (CCJs)
  • share financial information such as management accounts and cashflow forecasts.


You should always do your own research to understand what’s right for your business, as different CDFIs have their own lending criteria.

What are CDFIs?

CDFIs support businesses and organisations that are already active, looking for a loan and can make repayments.

They use their own lending criteria to make decisions, which means they may be able to support businesses that aren’t able to borrow from a mainstream bank right now.

CDFIs have existed in the UK since the 1970s, and there are around 50 CDFIs across the country who lend to thousands of businesses each year.

What do CDFIs offer?

  • Flexible funding over £25,000 and up to £250,000.
  • Loans for growth, investment, working capital, cashflow support or to refinance higher-cost debt.
  • A way to build your credit history so you’re more likely to successfully borrow from a mainstream bank in the future. 
  • Support with your CDFI lending application and one-to-one business guidance.

Just so you know, CDFIs can’t offer commercial mortgages or loans for property investment.

Who can apply for a CDFI loan?

Most businesses and social enterprises can apply for a loan from a CDFI.


Generally, you’ll need to:

  • verify how long your business has been trading
  • show your business can repay the loan
  • have no outstanding County Court Judgements (CCJs)
  • share financial information such as management accounts and cashflow forecasts.


You should always do your own research to understand what’s right for your business, as different CDFIs have their own lending criteria.

CDFIs help thousands of UK businesses every year

They went through everything with us to make sure it would work and the figures made sense... They want to make sure that your business will survive.

Esmie received a £48,000 CDFI loan for her street food, catering and education business.

6756 businesses used responsible finance last year

businesses used responsible finance last year

See how CDFI loans have already helped our customers

 

Translate Culture: from CDFI loan to a bank loan with Lloyds

In 2023, due to having only a limited accounting history at that time, Translate Culture were unable to secure finance through a mainstream bank.

To ensure they could meet rising client demand responsibly, they turned to a CDFI, which provided essential growth funding. This support enabled them to recruit additional team members, strengthen delivery capability and maintain the momentum of their early expansion. 

Throughout the duration of the loan, they maintained 
consistent and reliable payments, demonstrating both financial stability and commitment. When the loan came up for renewal, Translate Culture’s performance and increased maturity meant they were now more likely to be successful in applying for a loan from a mainstream bank. 

Following sign-posting from the CDFI, they approached Lloyds and successfully secured a loan.

 

Antonia’s Pearls: backing the next stage of growth

In 2003 Antonia and David created Antonia’s Pearls, offering beautiful, luxurious and thoughtful holiday accommodation where they live in Cornwall. In 2026 they were looking for finance to complete a new holiday accommodation project.

“Our application wasn’t at the stage where bank finance was the right way forward but Lloyds was testing an innovative referral scheme designed to enable more businesses to access the finance that suits them by offering a referral to a community development finance institution (CDFI)."

Through a CDFI, they secured a £25,000 loan which enabled them to complete the project, support local tradespeople and generate future business growth.

Important information

CDFIs are independent of Lloyds Bank. Lloyds Bank does not assess CDFI applications, decide whether finance will be offered or guarantee that an application will be successful. Each CDFI uses its own eligibility, affordability and credit criteria. Before entering into an agreement, check the interest rate, fees, total amount repayable, repayment terms and any requirements for security or a personal guarantee.