With banks reluctant to commit in recent years, small firms have been forced to embrace other financial options, such as peer-to-peer lending and crowdfunding.As a result, eBay found that 72 per cent of the UK’s small companies said they’re no longer dependent on support from banks, while a further snub from 62 per cent came as they said they don’t need banks to achieve success. Funding Circle is a prime example of a company providing alternative finance to SMEs. And on 20 October, the London-based firm which has raised $215m from VCs in the past year expanded beyond the UK and the US to begin serving Germany, Spain and the Netherlands. In order to support SMEs in a market that has been failing them, the European Investment Fund (EIF) and Barclays have partnered in an agreement to provide 100m worth of loans to innovative SMEs over the next two years.
Read more on borrowing:
- Bank borrowing alternatives: What is best for you
- UK businesses blame lack of finance for export delays
- KPMG backs alternative finance and fintech to deliver small business growth
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