A new web portal has been launched to help SMEs find alternative funding options to traditional bank loans. The Alternative Business Funding has been created by the key players in the non-banking funding market.
Matthew Fell, Director for competitive markets at the Confederation of British Industry (CBI), a leading lobbying organisation, said: “The simple fact is that we need to raise the level of finance in the economy to support growth aspirations, so to this end the alternativebusiness.co.uk portal is an important step forward – providing a collaborative environment for business funding and recycling opportunities from other funders.”
Helping resolve competition issues in the SME banking market
The launch of this new initiative comes just as the Office of Fair Trading announced findings from a report regarding competition issues within the SME banking market. It was believed that big banks could be hindering businesses from securing alternative funding and also cites that there is not enough information available for business owners to even consider seeking other options to banks.
It is hoped this web portal will help change this pattern and open up new opportunities for small and medium businesses in the UK; stimulating a more competitive market in the process.
The website is designed to be simple and unobtrusive, with only a small amount of information needed in order to access information. All you have to do is enter the amount of funding required and answer a series of questions to find a selection of good suitors. There is a traffic light theme with unsuitable options marked with red, possibilities with amber and a great match with green. At the end you get to choose your preference and are then presented with the contact information.
Besides being a useful service for SMEs, this is also acting as a spearhead for a campaign to create a healthier environment for business funding.