Growth Street sees lack of alternative finance awareness in Wales

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.

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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.

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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.”