Demand for alternative financing on the rise, research shows
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.
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.
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.