According to the Alternative Finance Report, 42 per cent of SMEs are unaware of the funding opportunities available to them as smaller companies tend to stick to the financing options that they have experienced and they understand.
Currently the government is also attempting to encourage SMEs to consider alternative options - particularly when funding isn’t available through traditional methods and have introduced legislation meaning that banks must refer businesses refused for finance to alternative finance methods. They have also invested £40 million in the Funding Circle, a peer-to-peer platform via the British Business bank.
With this in mind, SME magazine have compiled our guide to understanding not only what options are available, but also which businesses they suit best.
In our next instalment of the alternative finance series, we explore the Business Growth Fund…