Invoice financing, crowd funding and peer-to-peer lending are part of a “new world order” of finance that is offering small businesses cheaper and faster alternatives to bank loans, suppliers of alternative finance said at a recent ACCA conference.
As quarterly figures show bank lending for businesses and homeowners fell by £2.4bn at the end of 2012 despite various government schemes to encourage bank lending, there is growing demand for alternative finance.
Banks’ reluctance to lend has left a gap in the market for the UK’s inventive and fast-growing alternative finance sector. Suppliers say accountants can profit from the new finance sector.
Nigel Maine, head of marketing at Finpoint, an online service that connects small and medium-sized business borrowers with lenders, said it wanted SMEs to “work hand in glove” with accountants, who can help clients provide financial information to register with the service and submit information on their behalf.
Maine told AccountingWEB...