Alternate Finance for SMEs
(Small & Medium Businesses)
Finding funding for SMEs can be a daunting task today.
The major banks are constantly telling us how keen they are to support small business but then create a long drawn out process which weeds out most of the applications before they have the chance to reject them!
According to research carried out for the National Association of Commercial Finance Brokers, two thirds of the owners of SMEs in the UK start and stop their search for funding at their own bank.
That means there is a huge number of SMEs in the UK which are not getting the finance and support they need to grow. As 60% of private sector employees in the UK work for SMEs then this is a sector we should all be supporting wholeheartedly.
In 2015-16 acorn.finance funded 88% of clients through the “alternative funding market”.
This does not mean that 88% of SME loans are provided by alternative funders but shows the potential for businesses turned down by the high street to gain funding.