Commercial lending is one of the most talked about subjects in the finance industry. With so many technological advancements and alternative lenders now circulating the market, SME’s are now successfully growing their companies like never before.
But despite alternative lenders becoming the champion for small to medium enterprises, many businesses still know very little about them. With this in mind, here’s our top facts on the alternative finance industry.
Despite previously being relatively unknown, the alternative commercial finance industry is quickly growing at an accelerated pace. With an increasing number of UK SME’s turning to alternative finance as source of commercial lending, it’s no surprise that the industry has grown by 35% in the last year.
According to Nucleus Commercial Finance, the alternative finance sector in the UK is estimated to be worth £12.3 billion by 2021, double its initial worth in 2017. With so much uncertainty surrounding Brexit and many SME’s struggling to obtain the funding, it’s no surprise that there has been a boom in the alternative lending market.
When it comes to commercial lending, SME’s are foregoing the high street banks and looking into more alternative options. With great recognition for their flexibility and tailored approach to commercial lending, it’s no surprise that 52% of SME’s are now familiar with alternatives to traditional banking.
Despite their ability to assist SME’s, many businesses are not opting for alternative lenders. This is likely due to their rejection for credit from banks and the lack of information they are provided on alternative finance.
Difficulty to obtain funding
In order to get off the ground, UK SME’s require access to funding for a variety of expenses. But obtaining the funds the need isn’t as easy as you might expect. According to The British Business Bank, 25% of small-scale businesses that apply for a loan to banks get their application rejected. Unfortunately, this had created a funding gap, amounting to £4 billion each year.
At Think Business Loans, our customers are at the heart of what we do. We understand the difficulties SME’s face in applying for commercial loans that suits their exact requirements. That’s why we combine human expertise and industry leading technology to help simplify the process.
Our iFunds technology searches over 200 commercial lenders and reveals all the eligible options available to you. As a result, we are able to achieve an 85% success rate when it comes to matching our clients.
If you would like more information about alternative finance and commercial lending, 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