alternative finance

47% of Business Owners Claim Their Bank Gave Them Bad Advice

47% of Business Owners Claim Their Bank Gave Them Bad Advice

47% of UK small business owners claim that advice they received from their bank had a negative impact on their enterprise, according to a report by Amicus Commercial Finance. The survey of 504 small business decision makers revealed that 16% admitted their firm is now in a worse position having accepted such recommendations – with 40% saying the service they’ve received in the past “isn’t good”. The relationship between small businesses and traditional lenders appears to be straining, with 30% of enterprise owners refusing to describe their bank as ‘helpful’, while 46% wouldn’t describe them as ‘flexible’ either. When quizzed about their biggest grievance with modern day banks, respondents cited having to deal with call centres as a means of customer service as the biggest – believing them... »

Businesses Owners Still Reliant On Bank Of Mum And Dad As The Real Thing Turns Them Down

Businesses Owners Still Reliant On Bank Of Mum And Dad As The Real Thing Turns Them Down

25% of micro-businesses owners still rely on personal savings, family borrowings and credit card loans, to fund growth – according to a report Close Brothers. Banking on Growth: Closing the SME funding gap revealed a disparaging gap between the success rates of lager firms and micro-businesses (those with between one and nine employees) seeking finance from traditional lenders. While 38% of all small businesses have used bank loans to grow, this figure rises to 51% when enterprises with more than 100 workers are considered. Early-stage businesses and start-ups also struggle to gain the trust of banks in the beginning of their journeys, as 37% admit they’ve been refused credit in their first two years of trading. It’s suggested a failure for small businesses to secure funds could hamper lon... »

Small Businesses Seek Alternative Finance as Banks Turn Them Down

Small Businesses Seek Alternative Finance as Banks Turn Them Down

UK small businesses are looking towards alternative sources of finance as too many are being turned down by traditional lenders, according to a report by Amicus. A survey of 400 small enterprise owners found 16% of those seeking finance had been previously turned by a mainstream lender – a figure up from 11% in 2015. 31% of respondents claimed their inability to obtain finance from a traditional financial institution meant they had lost out on a business deal or investment opportunity with 15% believing they don’t make quick enough decisions. 12% highlighted inflexible lending conditions while 8% said insufficient knowledge and experience was a reason for them losing faith in traditional banks. As a result, small businesses are increasing looking at alternative forms of finance such as pro... »

50% of UK Business Owners Look to Grow Operations

50% of UK Business Owners Look to Grow Operations

A new level of optimism among small business owners has many wanting to expand with 50% planning to grow operations in the future, according to a new report by Fleximize. Of the 129 businesses surveyed, 42% of entrepreneurs said they intend to develop new products and services, 23% said they had plans to hire more staff and 17% believe they will need larger premises. It was also revealed that 27% of business owners intend to buy new machinery, with one in three planning to expand into new geographical markets. Additionally, the findings indicate growing business revenues and profits. 35% of the businesses surveyed said their revenues were higher than they were 12 months ago while 29% said their profits were also higher over this time period. Fleximize has suggested that the rise in alterna... »

One Fifth of Small Firms Rejected for Funding by Banks

28% increase in the number of small and mid-sized business credit rejections, totalling an estimated £1.44bn One-in-five small firms are being rejected funding from banks, according to new research, with 12% of medium firms being turned away. The report, which was released by finance company Fleximize, revealed a rise in rejected credit applications to 28% between July and September 2014, totalling an estimated £1.44bn, with an additional £417m worth of overdraft applications being turned away too. This lack of bank lending coincides with a steady increase in firms seeking alternative finance routes – such as crowdfunding and invoice finance. With new government legislation meaning banks will have to forward the details of small and mid-sized business owners they reject for finance to plat... »

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 forc... »

Number of Self-funded Small Businesses Jumps 18%

Report reveals that nearly half of small and mid-sized businesses are choosing to use their own savings to fund growth Research by Bibby Financial Services (BFS) discovered that the number of self-funded, or family and friend assisted, small businesses jumped 18% in the last six months. The number of companies relying on their own or family and friends’ savings has risen from 26% to 44%, making it the most popular form of funding among the group. The survey was conducted with 1,000 small and mid-sized businesses, of which many stated that they feel banks remain unwilling to lend to them. BFS’s chief executive officer, David Postings, believes that the sudden increase is a result of a newfound optimism with the economy’s growth; however he warns against self-financing for long-term, sustain... »

7 Alternatives if Your Bank Withdraws Your Business Overdraft

7 Alternatives if Your Bank Withdraws Your Business Overdraft

Overdrafts can be extremely useful for managing cashflow, especially for businesses with uncertain or seasonal trading. Unfortunately, over the last few years there has been pressure on traditional bank overdrafts that will only get worse, leading to strong demand for alternative finance options. Luckily, alternatives are emerging, but with a wide variety of lenders and finance types it is difficult to know where to go next. Here, Conrad Ford of Funding Options gives seven sources of alternative finance if your bank removes or reduces your business overdraft. Finance your invoices For businesses looking to expand, invoice finance helps you to grow with less risk and is a good option for businesses with unpaid invoices who need to access capital quickly. Many providers will make you commit ... »

Alternative Finance Provides Comfort for SMEs

Conventional bank loans, often seen as the traditional option for raising business finance, are being ignored by small and medium-sized businesses due to worries about restrictive eligibility criteria and the wide range of other finance options available, says Bibby Financial Services. Although statistics from the CBI show that bank lending to businesses increased in November 2009 for the first time since January 2009, lack of access to finance over the course of last year saw many businesses turn to other options. Research Bibby Financial Services carried out into the financial intermediaries sector in 2009 found that the question of raising finance is a key concern for four in 10 small and medium-sized businesses but, more alarmingly, three-quarters (74.3%) had found that stricter bank l... »

Alternative Finance is Key in the Recession

Following news from the Insolvency Service showing a 51 % rise* in the number of firms going bankrupt in the last quarter of 2008, Bibby Financial Services, the UK’s leading independent invoice financier, is urging small and medium sized firms to consider all options before they face insolvency. While the latest CBI Access to Finance survey (404K PDF) shows a marked decline in firms’ ability to access credit, alternative finance providers are actually increasing the amount they’re advancing to small and medium sized businesses. Indeed, last year alternative finance providers advanced £18 billion** to struggling UK firms – £276 million of which was advanced by Bibby Financial Services, an organisation open for business when many traditional providers̵... »