November 10th, 2017
MANY small businesses are turning to alternative finance options to support their growth plans in 2018, research suggests.
A poll of 1,000 small business owners by Payments Company ‘Worldpay’ found 52% are concerned that traditional routes to finance, including bank loans, might not be available at the same levels in the coming year.
Nearly a third (30%) have already encountered difficulties securing funding through these traditional channels.
Meanwhile, 40% of younger business owners claimed the growth of alternative finance options has made them less reliant on banks for funding.
The poll found alternative funding options are almost on a par with traditional bank lending in terms of popularity among start-ups and younger business owners.
Although 21% of business owners aged 44 or under said they would still apply for a bank loan when looking for funding, 28% said they are more likely to look at Invoice Finance, supply chain finance, crowdfunding, peer to peer lending and 6% a business cash advance.
The survey also suggests small business owners are concerned about political and economic uncertainty in the year ahead.
Just 43% thought trading conditions would improve in 2018, with Brexit the most popular reason for their concern.
The growth in Alternative Finance continues with Invoice Finance and Supply Chain Finance increasing in popularity – poll on poll, year on year.
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