Most business advisers would recommend alternative finance to fund growth
THE VAST majority of business advisers would recommend alternative finance to small- and medium-sized enterprises (SMEs) looking to grow, ThinCats research has found.
The peer-to-peer business lender surveyed 300 advisory professionals during Spring 2018 and found that 89 per cent would recommend alternative finance – which includes P2P lending – for funding growth. 86 per cent of respondents thought alternative finance was suitable for refinancing and restructuring, while 84 per cent would recommend it for mergers and acquisitions.
81 per cent saw alternative finance options as suitable for management buy-outs and buy-ins, while 68 per cent would recommend it for working capital.
The survey also revealed that the single biggest challenge facing SMEs is restricted cash flow, with 57 per cent of respondents saying the companies they’re working with are being held back by this issue.
49 per cent of advisers said that banks tightening their lending continues to be a major problem.
“For years now, SME owners have complained that they can’t access their bank manager – and this naturally puts a block on access to finance,” said Damon Walford, chief development officer at ThinCats.
“It’s now alternative finance providers are heralding the return of a genuine, personal relationship with local business experts, who invest their knowledge and time in their clients’ business growth (a role that the banks have long since eschewed) to put their considerable expertise to good use – supporting SMEs.”
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