Six out of ten business owners (63%) have either used crowdlending or would consider doing so, according to new research by peer-to-peer business loan website FundingKnight.
In fact, nearly one in five SME owners or decision makers report that they have already used crowdlending.
The data reveals that nearly a third (30%) of businesses view external funding as vital if they’re to achieve growth. Some 24% say that without it their growth will be far slower and 12% believe it is the difference between survival and failure.
Yet more than half (53%) of SME owners and decision makers admit that they aren’t confident that they would currently be able to get traditional bank funding.
Nonetheless the research reveals a sense of optimism among UK SMEs, with an expectation that alternative methods of funding will sit harmoniously alongside traditional financing methods in the future.
Just a third (33%) of SMEs believe borrowing will remain difficult, while 38% say that alternative methods of funding, such as crowdlending, will be the future for businesses to access finance.
Graeme Marshall, chief executive at FundingKnight, said: “The future funding landscape is set to be extremely diverse, with positive signs that it will spark not only growth but also confidence in SMEs. We firmly believe that alternative methods of funding, such as crowdlending, are set to become a mainstay of business growth in this country.”
He added: “SMEs need to be taking advantage of the multiple sources of funding available in the UK. By using both traditional and alternative methods of funding, SMEs are able to not only spread the risk of borrowing but also benefit from the advantages of each method.”
Sally Percy is editor of The Treasurer