Alternative finance industry soars in 2015

In November 2014 Nesta and the University of Cambridge published its first large-scale study into the state of the UK alternative finance sector. Take a look at our infographic for a summary of their key findings for our industry

The report estimates that the UK alternative finance market grew to £1.74 billion in 2014, £1 billion of which was working and growth capital for UK companies. However, this number only equates to 2.4% of bank lending to UK businesses. This means there is plenty of room for alternative finance to grow.

We often hear from clients that their bank wasn't supportive of their plans to move their business forward or didn't understand their business and the Nesta report bears this out: While 79% of SMEs applied for bank financing before turning to Peer-2-Peer business lending, only 22% of these were offered bank financing.

In addition to the increase in adoption of alternative finance product and services, the report also demonstrates the positive impact on the businesses themselves. 70% of P2P borrowers saw their turnover grow and 63% recorded a growth in profit.

The report is well worth reading in full for those interested in the major trends and developments in the industry. We are proud to be part of this interesting and important sector that is helping great businesses grow (and perhaps it's time to stop prefacing it with 'alternative')!

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