Just 32% of young businesses rely on their bank as first lender of choice

Only 32% of businesses that are less than 10 years old rely on their bank as their lender of first choice, compared with 71% of businesses that are over 35 years old, according to the latest research.

Fintech lender ThinCats revealed that 23% of younger businesses were more likely to source an alternative finance platform, compared with just 4% of older businesses.

Other highlights from the research included:

  • 65% of businesses where decision makers were aged under 35 revealed that traditional banks weren’t their first choice for funding, compared with 30% for businesses where decision makers were aged 55 and over
  • 22% of younger decision makers said they’d choose an alternative finance platform, whereas just 6% of older decision makers said they’d consider that option

“…It’s encouraging to see that smart-minded entrepreneurs are switching to the growing number of non-bank lending alternatives,” said Damon Walford, chief development officer at ThinCats.

“It’s critical that UK entrepreneurs can access modern funding solutions for a modern economy.”

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