According to alternative Lender Capify, 2/3 of UK SMEs are recovering from the influences of Covid-19. The survey of 250 SMEs revealed that nearly a half of SMEs have already hit or outperformed pre-pandemic levels in terms of turnover, and 25% are likely to achieve this within a year. Not surprisingly, one in three businesses expect to need financing in the next year. Interestingly, forty-one percent said they would seek traditional lenders for future loans, but 39% said they would use alternative finance lenders. Capify commented that “Alternative finance has played a huge part in propping up and supporting businesses through the challenges of the last 18 months, and our data shows that as an industry, it is now being considered by SMEs just as much as traditional lending options like high street banks. There is still a long way to go on the road to recovery for SMEs, even following the end of financial support from the government, which is why alternative lenders like Capify will need to be working closely with them”.
Source: P2P Finance News
The Startup Pack comment:
As we have commented on numerous occasions, Capify are absolutely correct in saying that ‘alternative’ sources are becoming increasingly important to SME’s seeking finance in these post-Brexit and post-COVID times. With ‘traditional’ Lenders being extra cautious at this time, however, there is no doubt that the ‘alternative lenders are, and will continue to benefit from Government support. This is where the British Business Bank can continue to demonstrate its effectiveness as a conduit for such funding.