Businesses experiencing difficulties raising finance should be aware that alternative sources of funding are available as new figures show that peer-to-peer lending via the internet has now topped £250 million.
An increasing number of small and medium-sized businesses are turning to web-based services such as Funding Circle, which enable them to borrow from wealthy individuals at considerably lower interest rates than those offered by the banks. Since its launch in 2010, Funding Circle has lent more than £34 million to businesses.
Many smaller businesses are still finding it difficult to obtain the funding they need from more traditional avenues such as banks.
However, many are also unaware that there are plenty of viable alternatives out there, including online business lending services and business angels. These latest figures show that more people are starting to realise that a ‘no’ from the bank does not have to mean the end of the story.
Of course, everyone’s circumstances are different and what works for one business may not be suitable for another, but it is important that you are aware of the options available to you. Your accountant can advise you on the most appropriate route to take and assist you in preparing a comprehensive funding application.