Alternative finance is badly named. This label suggests that opting for financing routes without involving the big banks is unconventional or “out there”.
But that’s certainly no longer the case, as people increasingly recognise the benefits of these smaller, more nimble businesses.
Last year, around £15bn was pumped into British SMEs from alternative finance firms – an indication of how mainstream the sector has become. And it’s more than just the funding gap that’s prompting this surge, because people are now realising that they can get a speedy service which simply isn’t feasible when going through the banking channels.
In the past, businesses only approached the alternative sector for funding when banks turned them down, but even that is starting to shift.
Read the full article at: http://www.cityam.com/271232/why-alternative-finance-now-mainstream