Breaking Flooring NewsBusiness NewsFlooring Headlines

Small firms Blinkered

A third of SMEs are unaware of funding options other than the traditional forms offered by their high street bank, a survey by Aviva has found.

Some 29% of surveyed firms said they weren’t aware of ‘alternative’ options – such as peer-to-peer lending and crowdfunding – for financing their business plans. The figure rises to 80% among sole traders.

Other interesting findings about alternative finance:

  • just 19% of SMEs have considered an alternative funding option
  • 40% prefer to deal with their bank instead
  • 70% see alternative forms of funding as riskier than traditional bank finance
  • 51% of alternative finance applicants cited better rates and greater flexibility as important factors
  • 31% of alternative lending applicants said it was easier to secure than a bank loan.


A quarter of the firms surveyed said there wasn’t enough information available to help them understand the full range of options.

Aviva’s head of small business, Robert Ledger, said:

“High street banks will always be an important port of call for many SMEs – whether they are at the beginning of setting up a new business, or seeking investment to expand an existing one.

“However, with the rise of alternative finance options and increasing media focus on schemes such as crowdfunding and peer-to-peer lending, it’s important for small businesses to understand that there are a variety of options open to them outside of traditional finance methods, designed to suit differing business needs.”

 

Tags
Show More

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings
NameEnabled
Technical Cookies
In order to use this website we use the following technically required cookies: wordpress_test_cookie, wordpress_logged_in_, wordpress_sec.
Cookies
We use Cookies to give you a better website experience.
Privacy Policy
Check if you have accepted our privacy policy.
Terms & Conditions
Check if you have accepted our terms & conditions.
Cloudflare
For perfomance reasons we use Cloudflare as a CDN network. This saves a cookie "__cfduid" to apply security settings on a per-client basis. This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.
Close