P2P News – All The Latest Updates
Hi guys welcome to another edition of our P2P news blog. This week we start our news update by looking at the alternative finance challenges in mainstream lending for the SME market to focusing on the protection that P2P investors need. Missed our very first P2P round-up? If so, click here.
One In Six SME Owners Seeking Finance Say They Have Been Turned Down By A Mainstream Lender
Leading specialist lenderAmicus conducted a study recently and found out that one in six (16%) SME owners seeking finance say they have been turned down by a mainstream lender (such as a high street bank).
Nearly a third of SME owners stated in the research that their inability to secure finance terms with a mainstream lender meant they had lost out on a business deal or investment opportunity. Because of this, SMEs have gained an interest in alternative finance – including forms such as property finance, crowdsourcing, invoice finance, asset finance and P2P lending.
Just over half of the SME owners that took part in the research believe that the huge amount of flexibility that alternative finance offers, is more appealing for SMEs to use, the number is up from 45% in 2015.
The respondents’ views on alternative finance included :- greater ability to lend (46%) was second and longer payment terms (34%) was third. Speed (30%), specialist knowledge of their clients’ industries and challenges (29%) and more compelling payment structures (27%) was ranked fourth, fifth and sixth respectively. (Stats taken from Finextra)
Over half of the respondents said they have already used alternative finance or considered using it.
Image source : Business Europe