Alternative Finance Portal’s Funding Reaches £1.2bn
Alternative business funding portal joins forces with 40 local lenders to provide 40,000 businesses with finance
40 Community Development Finance Institutions (CDFI) have partnered with alternative funding portal, Alterntivebusinessfunding.co.uk, to provide finance to bank-rejected businesses – taking the total funding to £1.2bn.
The finance portal launched on March 11 when seven alternative finance platforms partnered up to create a place where small businesses could look for funding across the alternative finance market.
Users are able to submit responses to a few simple online questions including amount of finance needed, desired timeframe and turnover, and are then directed, via a traffic light system, to the most suitable provider/s available on the platform.
The new lenders join forces with invoice finance marketplaces Platform Black and MarketInvoice; peer-to-peer lenders Zopla and Funding Circle; crowdfunding sites Seedrs and Crowdcube, and pension platform Pensionledfunding.com.
The CDFI partnership means that 40,000 businesses have now been helped by the portal’s members.
Ben Hughes, the CDFI trade body’s chief executive, discussed how joining the portal has helped enhance the group’s reach:
“CDFIs have provided vital support to thousands of businesses in the past and we want to help 10 times more in the future. With the help of recent funding, we are in a good position to lend to many more businesses, and are very excited to be part of the alternative business funding portal.
“Linking up with other leading funders makes it easy for small business owners to navigate the options and find what’s right for them. CDFIs, like all the funders on the portal, share the aim of simplifying this process, supporting businesses and collaborating with other funders.”
Chairman of pensionledfunding.com, Adam Tavener, also commented on the benefits the collaboration will have for small and mid-sized businesses:
“The addition of the CDFA, and its community network of small business funders, means the ABF portal now offers even more choice to SMEs. Importantly the CDFA operate at a local level with face-to-face interaction with businesses, so provides a distinct alternative to online platform funding solutions.”