When the Bank Rejects Your Business Funding Application, Check Out the Alternatives

In the wake of revelations that many small to medium enterprises (SMEs) run on the owner’s personal finance because of difficulty in obtaining funding, 7 of the UK’s biggest alternative financing services have launched a joint effort to make business funding easier for SMEs.

The web portal at alternativebusinessfunding.co.uk will point small and medium sized businesses to the most appropriate source of alternative funding for their needs. This will help many businesses find out about finance possibilities they never realised existed. 

As Matthew Fell, director for competitive markets at the Confederation of British Industry, states on the website, “The simple fact is that we need to raise the level of finance in the economy to support growth aspirations.” With SMEs struggling to find funding, this dashboard for alternative options will be a welcome solution. 

Who`s Behind the New Solution?

 

The funding companies behind the web portal are Crowdcube, Market Invoice, Zopa, Funding Circle, Seedrs, Platform Black and Pensionledfunding. Together, they account for more than 70% of the UK’s alternative business funding provision. 

This collaboration has the power not only to help UK SMEs grow their business, but also to create a new perception and expectation of business funding practices. Banks will be able to refer businesses to the alternative funding hub after an unsuccessful application for bank finance, in line with the recent Breedon Report. 

Before you rush off to apply for a business loan, take a careful look at your current finances and forecasts to make sure the repayments will be manageable. Get an second opinion from a reliable expert about the best ways for your business to obtain funding and manage its financial obligations. 

360ict provides managed IT and business support services to SMEs in central London and the South East. Call us on 0208 663 4000 for free advice on your technology or your business finances.