Peer to peer lending and alternative finance options are the route that many SME business owners are using to support their 2018 growth plans research has suggested. With traditional bank loans and finance options becoming less prevalent and difficult to secure, alternative finance options have plugged this gap. 40 per cent of young business owners have turned towards such options to support their growth and expansion as highlighted in a poll carried out amongst 1000 small business owners that was carried out by payment company world pay. The same poll also found that thirty per cent, nearly one third had already encountered difficulties in obtaining the funding they required from traditional methods.
The poll went on to find that alternative funding options are now on par with traditional bank lending in terms of their popularity amongst young business owners and entrepreneurial start up business.
While 21 per cent of business owners had said they were still likely to apply for a traditional bank loan when looking for finance, 34 per cent said that they were also likely to look at alternative methods, including crowd funding, P2P lenders and merchant cash advances along with other options available via commercial finance brokers.
Brexit also appears to be playing heavily on the minds of many SME business owners the survey has suggested with many concerned about the ongoing political and economical uncertainty.
However, despite these concerns, many SME’s continue their growth as we enter the midway through 2018 and with this in mind it is important for business owners to familiarise themselves with the different types of funding options that are available to them in order o ensure they picking the best options that match their circumstances.
While banks continue to play a vital role in supporting thousands of SME’s each year there are many different types of lending options available to SME owners offering a range of facilities that may better match their requirements including options for unsecured, asset based finance, invoice discounting and factoring and shorter term cash flow overdraft facilities available.