A growing number of businesses are using alternatives to high street banks to finance deals, research from Deloitte suggests.
As banks continue to be accused of being stingy with lending to businsses, debt transactions from “alternative” lenders such as Ares Management, Alcentra and BlueBay Asset Management more than tripled in the third quarter compared to the first quarter, according to the Deloitte report.
Companies using alternative lenders include The Trainline, Cath Kidston and Pure Gym, Deloitte said.
Non-bank lenders are becoming increasingly common, participating in 55 UK mid-market debt deals since October 2012. Of the 55 deals, 24 were in the third quarter of this year, more than three times more than the seven deals for the first quarter of this year.