53% of SMEs predict alternative finance demand to rise

53% of SMEs predict alternative finance demand to rise



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More than half of small business owners expect demand for alternative finance to rise by nearly a third over the next two years, research suggests.

New data released by specialist lender Amicus Finance revealed that 53% of small business owners expected demand for property finance and crowdsourcing to increase, while just 6% said it would decline.

John Jenkins, CEO of Amicus, said: “This research shows that the business finance landscape continues to change.
 
“Demand for alternative finance is set to go from strength to strength over the coming years as mainstream lenders struggle to evolve to adequately support a thriving small business community.  
 
“Small businesses are increasingly turning to specialist lenders who have the skills to understand their specific needs.”
 
The research also highlighted that crowdsourcing still remained as the most popular means of alternative finance.
 
Small business owners in north-west England seemed particularly impressed by alternative funding, with 69% of respondents expecting demand to rise.
 
Meanwhile, 51% of SMEs nationwide admitted they had either used or considered using alternative finance, an increase of 9% on the previous year.
 
In 2015, the UK online alternative finance industry grew to £3.2bn, an 84% increase compared to the £1.74bn figure in 2014.
 
Last month, Amicus launched its commercial arm, Amicus Commercial Finance, after gaining an asset-based lending facility from RBS. 
 

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