Why is the British Business Bank backing Alternative Finance? With results in from a recent survey it seems the government and the British Business Bank are making headway. UK Bank Overdrafts are still the main option for UK businesses way ahead of alternative business funding by a long mark. British Chambers of Commerce survey shows awareness of alternative funding options is still low in relation to traditional funding routes such as the high street banks and ordinary business bank overdraft facilities.
The survey reveals that 88% of respondents were familiar with bank loans, 88% familiar with commercial credit cards, 92% were familiar with bank overdraft facilities while on the other hand 41% were familiar with crowdfunding / peer to peer, 38% knew about angel investment and only 46% knew of Trade Finance all of which are the champion products of the alternative commercial finance space.
British Business Bank backing Alternative Finance all the way.
Could it be that British Firms have been treading water throughout the uncertainty of Brexit? It would seem the government needs to push the offering available by the likes of the British Business Bank, specifically set up by the government to make growth funding and alternative finance available to all UK businesses.
The British Business Bank are indeed pushing the message out to all corners of the UK in their effort to raise more awareness of their facilities to businesses based in the UK. With sufficient government backing and marketing spend the British Business Bank can increase the awareness of products available.
In the wake of the Leave Vote, it seems that there is a good opportunity for alternative funders available to business owners. Whilst the breaking news that Lloyds Bank are shedding jobs and blaming the uncertainty around Brexit it would seem that the high street banks are already tightening up. To compensate for this uncertain period the alternative business space needs a significant PR drive.
“Merchant Cash Advance lending is growing in popularity month on month, we have seen a surge with our product especially in the wake of the referendum”. M, Jacobs “We are also expecting the product to keep growing over the next five years and increase its share of mainstream lending. As a merchant cash advance is in effect an unsecured loan that repays only when a business make sales it is a great product that is supporting UK businesses.
We expect the future polls to reveal substantial growth in this sector – great news for UK SME’s regardless of Brexit and regardless of high street banks yet again tightening their belts”