Small Businesses, Big Opportunities!
For several years small medium sized enterprises (SMEs) have suffered from a shortage in funding, with traditional lenders increasing regulations, while at the same time reducing the amount of credit extended. Subsequently, leaving behind a void to be filled by a more efficient financial platform, alternative business funding. With rejection rates for traditional loans continue to rise to over 50%, it is no surprise that SMEs are turning towards alternative lenders to help their business scale and grow.
Since 2013 the number of online alternative lenders has increased from 30 to an estimated 100+ with the market size increasing dramatically from 2014 to 2015. As lender growth increases so has the amount of loans provided. Research suggests that over a three-year period, the amount of alternative loans provided to UK businesses grew from $400M in 2013 to an estimated $6.7B at the end of 2015; reflecting a growth of 1675%!
Providing businesses with a wide array of lenders to choose from, the alternative lending market is reshaping the approach business take when access capital. This however makes navigating the market increasingly more challenging. To help bring greater awareness and clarity to this ever growing market, Finimpact’s data analysis team has created an informative infographic mapping out world’s online alternative lending landscape.
Building a strong environment for SMEs to thrive and grow is essential for economic growth and stability. Our mission is to empower small and medium business owners and provide them with a gateway to the FinTech revolution.