No two businesses are the same. From local barber shops to multi-million-pound tech titans, they can be vastly different things. It goes without saying therefore that business solutions aren’t always one-size-fits-all – and that’s especially true when it comes to funding.
Although the word alternative implies something off the beaten path, alternative funding is actually becoming the norm. For example, according to the Cambridge Centre for Alternative Finance the alternative finance industry grew 35% year-on-year to reach a value of £6.2bn in 2017.
The appeal for alternative finance is hardly surprising, given it lends itself to the ease of modern technology and simpler, faster customer experiences. In 2017, £4.2bn worth of business funding – 68% of alternative finance’s market value – was raised through alternative finance firms, the Cambridge Centre for Alternative Finance revealed.
And just to add to the versatility, alternative funding isn’t an industry that’s sitting still. 12% of platforms surveyed by the Cambridge Centre for Alternative Finance claim to have significantly changed their model over 12 months and a whopping 40% said they’ve slightly altered it. Considering the rapid pace technology evolves, getting stuck in the past simply isn’t an option with alternative finance providers and it’s encouraging that they’re continually keeping their eye on the ball.
With about 100,000 SMEs facing declined bank loans every year, which equals roughly £4bn worth of applications for finance, according to The British Business Bank, alternative finance seemingly stands out as the solution of the future for all SMEs to adopt. Indeed, considering Brexit’s looming large on the horizon businesses would be forgiven for approaching finance with caution. But as the backbone of the British economy, their continued growth and success is central to the economy as a whole.
The alternative finance industry has a huge role to play in ensuring the growth of UK SMEs is helped. And alternative finance products such as cashflow finance, business cash advance and property finance are just a few solutions helping SMEs accomplish their future goals.This article comes courtesy of Nucleus Commercial Finance, a leading UK alternative funding provider