The number of SME lenders reached 91 in 2013, up from just 46 in 2009. Figures from the National Association of Commercial Finance Brokers (NACFB) show there were 8 more lenders last year than in 2012.
Chief Executive, Adam Tyler, said to The Times, “Many SMEs don’t know these options exist. There is still a widespread perception that high street banks are the only source of funding for small businesses and, as a result, many SMEs who are ready to expand are missing out on the opportunity”.
Worryingly, it’s been reported by Rebuilding Society that many small business owners use their own personal credit cards and borrow from friends and family to get the extra cash. Some have even remortgaged their home to raise capital.
As reported, there are a wide range of lenders, crowdfunders and peer-to-peer lenders in the UK ready to help SMEs raise the cash they need. Some of these include, Funding Circle, Everline, Crowdcube and Boost Capital. Peer-to-peer lending and crowdfunding platforms are growing fast globally as they are an easy and attractive way to find investors for business projects.
If you are in debt and need to raise some funds to refinance your business, see our page on debt finance for companies.