Error loading MacroEngine script (file: MobileMenuNavigation.cshtml)

April 21 ,2016 | by Hari Sri

Demand for alternative financing on the rise, research shows

Alternative financing on the rise

The demand for alternative financing is rising, according to research from lender Amicus Finance. The UK’s alternative finance industry is now worth £3.2 billion, up from £1.74 billion in 2014.

The research, which surveyed 400 small business owners, revealed the types of alternative financing that are now being used by businesses.

Over 50 per cent of business owners have used or considered using alternative finance such as peer-to-peer (P2P) lending, crowdfunding, invoice finance, property finance and asset finance.

Increase

Over half of those surveyed (53 per cent) said that they believe demand for alternative finance will continue to rise, increasing by an average of 28 per cent over the next two years, whilst just 6 per cent think that demand will decline.

The research also found that out of the businesses that are looking for investment, 39 per cent plan to use it to invest in IT equipment, 18 per cent for investment in cars, 13 per cent for telecoms equipment, 12 per cent for plant and machinery, and 11 per cent for commercial vehicles.

Change

Commenting on the research, Amicus CEO, John Jenkins, said that it shows that the “business finance landscape continues to change.”

“Demand for alternative finance is set to go from strength to strength over the coming years as mainstream lenders struggle to evolve to adequately support a thriving small business community,” he said.

He added that more small businesses are choosing specialist lenders who have the skills to understand what their specific needs are.

Hari Sri

Hari is the LSBF Blog's News Editor. He manages the editorial content on the blog and writes about current affairs, SME, entrepreneurship, energy, education and emerging market news.

Share on Facebook Share on LinkedIn +1
There are no comments posted yet. Be the first one!
Please write your comment, minimum length 50 characters
Please insert your name
Please insert a correct email address
We couldn't process your comment, please try again later