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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