For this latest blog, I would like to share some information kindly provided to me by FA Simms & Partners.
Peer-to-Peer lending has lent out more than £459 million during the first quarter of 2015. This figure supports the UK SME market’s desire to seek investment from non-bank finance platforms.
When the banks went into decline during the recession, their lending to SMEs diminished which gave way to the non-bank finance industry to rise up and offer competitive investment opportunities to micro, small & medium sized businesses. A recent survey of 1,000 SMEs by Liberis, Business Friendly Finance show figures to support the increase in demand in alternative finance. The Business Monitor research showed that 30% of these small businesses have applied to an alternative funding provider for their finance.
Christine Farnish, Chair of the P2PFA said: “These numbers are excellent and reflect the strong industry growth into 2015. We are continuing to see strong appetite in the consumer market and a significant increase in lending flow to businesses to.”
There are two types of finance lending available; Equity Finance and Debt Finance. Equity finance can be used during any stage of a company’s growth from start-up right through to well-established. Debt finance would be used as a short-term capital solution to a current cash flow issue. Whether you are looking for equity finance or debt finance, there will be a non-bank platform available to fulfil your needs all which provide competitive advantages to a bank’s financial help.
You can read the full article at http://www.fasimms.co.uk/latest-news/the-rise-of-non-bank-lending-to-smes
For further information please contact:
Martha Wood, Marketing Manager
Available Mon – Fri 9am – 5.30pm