Despite making up 98% of the UK business population, the SME landscape is forever changing; especially when it comes to commercial lending products.
Traditionally, the first funding option for an entrepreneur would be the bank. But since financial crisis of 2008, banks have become increasingly reluctant to fund small businesses. As a result, alternative finance options have stepped into the arena, with the aim of plugging the investment and funding gap.
While commercial lending is vital to any business, many UK SMEs are unsure of alternative finance as a source of money; either as a loan or a capital injection. With this in mind, Think Business Loans reveals why alternative commercial lending can be a fundamental option to SME’s.
Quick finance when you need it mostAlternative commercial lending is also a great way for getting the finance you need, as quickly as possible. The looming deadline for Brexit is likely to be catalyst for seeking new funding arrangements, which means getting the money you need is vital. Alternative finance lenders are able to provide a quote for flexible business loans instantly, with access to your money in 24 hours upon approval.
Lack of understanding from banks
According to Close Brothers research, 12% of banks didn’t understand the SME sector and a further 10% don’t have the necessary understanding of borrower’s individual needs. While they may not be as well-known as traditional lenders, alternative lenders are able to understand your businesses individual needs to secure you the right product that best suits your business.
Since 2015, the number of bank branches in the UK has been falling steadily. In Scotland, they were down by 15% between 2012 and 2018. To combat this, many alternative finance providers created a digital-first approach in order to be more accessible to consumers. As a result, SME’s are now able to get instant access to the funding they need, at a time that suits them.
While more SMEs are embracing the shift to digital services, there is still huge value in being able to have a face-to-face conversation. At Think Business Loans, we are the first and only UK commercial lending brokerage that combines human expert lending managers and world-beating technology.
Our iFunds Technology innovative piece of technology to help assist both SME’s and lenders alike. iFunds matches SME’s criteria and searches over 200 lenders instantly. Unlike other comparison sites, we use technology to connect our system and website directly to every lender; making us the only online broker to offer you rates instantly.
If you would like more information about our commercial lending platform, get in touch with our lending managers today.
Jessica Court graduated from the University of Portsmouth in 2017 with a bachelor’s degree in Media Studies. She has previously worked within the In... Explore Author