AccountingWEB alternative finance guide 2013
With continued stagnation among traditional high street providers, non-bank lending is more than ever a viable option for small and medium-sized businesses looking to grow.
Despite encouraging signs of an economic upturn with record low interest rates and falling unemployment, bank lending to businesses remains depressed.
This was most apparent in the second quarter of the year when the Bank of England (BoE) said business lending by banks was down £4.5bn.
The government remains optimistic, but its Funding for Lending Scheme (FLS) has had limited success where net lending has been negative for the last two years.
Given this bleak backdrop, a recent Confederation of British Industry (CBI) report has urged small companies to consider a wider range of finance options.
Encouragingly a new wave of innovative non-bank providers has been gathering momentum and is playing an important role in filling the funding gap.
As 2013 draws to a close, crowdfunding, invoice finance and peer-to-peer lending are increasingly commonplace methods for businesses getting access to finance.
Whether it’s new finance for your practice or business, AccountingWEB takes a look at the alternative options that are taking root in the UK...
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- Asset-based lending
- Peer-to-peer and crowdfunding
- Pension-led funding
- Business angels
- Other alternatives and trends