2015: a Groundbreaking Year for SME Funding

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Nick Moules
29th December 2014

2014 has been a good year for the alternative finance industry. It has helped thousands of businesses access finance in a transparent way that connects them with hundreds of potential stakeholders. With the £2bn lent mark smashed back in the autumn, 2015 promises to be a year of greater choice and volume for SME finance and here are a few reasons why:

  • Election year should mean there is greater political pressure on lenders to prioritise business lending. It has always been a popular message, and while the Coalition can point to its record of supporting AltFi, Labour may have to promise more support to win votes.
  • Banks will be forced to refer customers to alternative lenders. The finer details of this are being worked out now, including the dominant referral website, but it will give SMEs useful signposting when looking for funding and raise the profile of online lenders.
  • More businesses are utilising cloud accounting. This allows lenders to plug in to their accounts and make a better judgement of the business’ ability to repay finance, making them more attractive to lenders. We wholeheartedly support this modern way of operating!
  • General awareness of alternative finance is only going to increase. The influx of ISA cash at some point in 2015 will lead to a new wave of media interest, while platforms are increasingly attracting venture capital investment which will manifest into more consumer marketing, predominantly on the TV, transport network and online. There will be no escaping AltFi in 2015…
  • The entrepreneurial spirit of alternative finance means new niches will be tapped. Where businesses might previously have been ruled out because of poor credit, a lack of track record or through operating in an undesirable sector, it is inevitable that some platforms will cater for this market with lenders happy to take on the risk in return for a higher yield.

It’s also a fantastic time to get a loan through rebuildingsociety’s ever-increasing lending community. Start your application now

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