Small and Medium-sized Enterprises (SMEs) are increasingly turning towards alternative finance, according to a new study.
The news, which comes from the latest research carried out by alternative lender Liberis suggests that traditional bank loans are falling in popularity among Britain’s SMEs – with just 15 per cent of firms pursuing such loans.
In comparison, almost half (46 per cent) of SMEs told a survey that they had opted for non-traditional financing options in a bid to grow their businesses.
Liberis CEO, Rob Straathof, said: “SMEs are increasingly turning away from bank loans in favour of alternative finance.
“Despite the economic uncertainty surrounding Brexit, it’s business as usual for the vast majority of SMEs.
“Small businesses are continuing to borrow to expand their business, finance refurbishment and new equipment as they remain positive about future business growth,” he added.
A separate study carried out by Amicus in June suggested that as many as 16 per cent of UK SMEs had been turned down by a high street bank – whereas 51 per cent of firms felt that alternative finance was a ‘more attractive and flexible’ option in terms of securing finance.