London SMEs most aware of alternative financing options

Research from peer-to-peer business lender Growth Street has shown that small and medium-sized enterprises in London are leading the way when it comes to awareness of the alternative financing options that are available to them.

The study surveyed 1,000 SMEs across the UK, exploring their views on business finance and exporting, and revealed that more than half of London-based respondents believe that there is enough guidance available to businesses that wish to export, compared to 36% of businesses across the rest of the UK.

Improvement

Despite SMEs in London being the most aware of alternative finance and exporting, the study showed that improvement is needed, with half of the city’s businesses and 30% of SMEs across the rest of the UK not exporting any services or goods.

The research also revealed that 50% of SMEs across the UK have yet to consider accessing finance from outside of their bank, suggesting that more needs to be done to raise awareness of ways in which businesses can obtain funding other than through their bank.

Flexible

Commenting on the study, Growth Street Chief Executive Greg Carter said: “Many businesses we speak to say that banks have made it harder for them to access really flexible, tailored finance.”

He added: “With so many businesses having never looked outside their bank for funding, it’s clear there is more for finance providers to do to boost businesses’ understanding of the finance options available to them.”