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Peer2Peer Finance News | May 27, 2019

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Growth Street sees lack of alternative finance awareness in Wales

Growth Street sees lack of alternative finance awareness in Wales
Marc Shoffman

GROWTH Street has warned that Welsh small- and medium-sized enterprises (SMEs) are limiting their finance options.

A poll by the peer-to-peer business lender has revealed that only 27 per cent of Welsh businesses have considered a source of business finance other than a bank – in contrast to 35 per cent of firms across the UK.

Responses among Cardiff-based firms were only marginally higher than the rest of Wales, at 28 per cent.

Read more: Growth Street addresses liquidity demand after student feedback

Growth Street’s survey also highlights a reliance on banks, with 54 per cent of Cardiff businesses stating that banks would be their first port of call when seeking new funding – compared with 51 per cent in the whole of the UK.

Furthermore, 17 per cent of respondents said they ‘do not know’ where they would go to seek funding.

Read more: Growth Street to inject £20m into Welsh firms

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“Welsh SMEs are lagging behind the rest of the UK on several fronts, from knowledge of finance outside banks to considering going somewhere other than a bank for their finance,” Greg Carter (pictured), chief executive of Growth Street, said.

“The overarching lack of awareness in Welsh SMEs poses a serious challenge for banks and non-banks alike

“We must find a way to engage and educate Welsh businesspeople about alternative finance options if we are to tap into a market that will become increasingly important following Brexit.”