The survey commissioned by Liberis, a provider of business cash advances, found that almost two thirds of those rejected has experienced problem as a result. The research also found that micro businesses (those with 0-9 employees) are 62 per cent less likely to use alternative funding sources.
The news comes on the day that Liberis is announced as the newest member of Alternative Business Funding (ABF), a collaboration between Britain’s leading alternative funders which aims to be something of a one-stop-shop for those looking for alternative funding.
Liberis CEO, Paul Mildenstein, said: Its great to be part of this unique resource for SMEs that are unable to get bank funding, or are looking for a genuine partnership approach to funding their business.
The portal was partly set-up in the hope that it would become the point of referral for those rejected for bank funding.
The Government recently consulted on the possibility of forcing banks to point rejected business borrowers in the direction of alternative funders, and there is wide speculation that ABF will be named as the referral point for banks in tomorrow’s Queen’s speech.