Small businesses should look at alternative finance to banks
While many small businesses haven’t applied for funding because they say they ‘don’t need it’, out of those that do, a recent survey of 1000 small businesses showed that 68 per cent got all funding they needed, 21 per cent got some of their target, but 10 per cent were still turned away causing cash flow problems and a missed opportunity for growth. 16 per cent of respondents didn’t apply for funding at all because they didn’t think they’d get it.
Just 15 per cent applied for a business credit card. The most popular alternative finance was peer-to-peer funding, followed by crowd funding.
The survey also found that the internet and social media were the most popular sources of funding information the average time spent researching business finance sources is 3.5 hours.
People often know the benefits of alternative finance but many still see it as last resort funding – if you would like to know more about crowd funding let me know or watch this short video.