Publication: Journalist PR
30th December 2019
300% increase in small businesses looking to non-mainstream funding
The year-end review of lending to small businesses conducted by Funding Xchange, points to the impact of Brexit uncertainty. Both small businesses and lenders are shown to have been more cautious in their lending habits, particularly from the period when it became clear that the Withdrawal Agreement would fail to pass through Parliament.
Funding Xchange is the main Government appointed online platform for businesses to apply for funing from a range of non-mainstream lenders, after having been declined by their own high street bank.
Over the course of the year, 30,000 businesses accessed Funding Xchange's platform, and the value of funded deals by Funding Xchange has seen a threefold increase in 2019 compared to 2018. This reflects the continued need for businesses to access non-bank finance solutions.
Within the review that Funding Xchange has conducted, there are several key factors of note. Firstly, high street banks have become more cautious with their credit policies with the main adjustment taking place in late 2018 and some further tightening in the second half of 2019. Secondly, looking at specific sectors, Construction, Retail and Property have been particularly hit, with a higher proportion being supported by other lenders.
Additionally, in the last two months of the year in particular, there has been a shift towards more sole traders and start-ups seeking smaller loans and overdrafts. These customers segments have suffered the most from the reduced credit appetite of lenders in 2019 and are finding it difficult to find mainstream funding. Funding Xchange looks to plug these funding gaps through their data-powered platform which makes funding easy and transparent for businesses. By working with a wide array of lenders, Funding Xchange is able to offer tailored funding solutions for small businesses in a matter of minutes, bridging the financing gap that many small businesses of today face.
Read the full article on Journalist PR