Alternative Finance - What Does This Mean For Our Clients?
Whilst banks and more traditional lenders may have tightened up their lending appetite, over the past few years there has been an explosion of ‘alternative funders’ appearing in the market place. Funding growth, investing in new products or taking on a new opportunity all have an impact on cash flow. This is a real issue for businesses with 24% of small businesses saying that access to working capital and funding growth is their biggest business challenge. Historically turning to banks would have been the answer but this has become harder. Between 2012 and 2013 53% of small businesses who applied for a loan were declined and 60% of small businesses say it is harder to get credit than 5 years ago. The Alternative funding market has increasingly become the ‘go to solution’. In 2014 it was worth £1.74Billion and has shown growth of over 150% year on year. Could this be an option for our clients’ working capital requirements?
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