April 8 2016.

Growing businesses are still struggling to unlock the cash they need to grow following the 2008 financial crisis.The ramifications of the recession have meant banks remain cautious. So much so that The Bank Of England has just released figures showing that net lending to SMEs has fallen by £300 million, while the British Bankers Association has seen a £2.7 billion drop in the value of net loans.

Banks have been encouraged to lend more via schemes such as the Funding For Lending initiative, introduced by the Government in order to kick-start corporate borrowing. In practice, however, four in ten businesses’ first-time loan applications are still rejected by banks.

This is massively frustrating to business owners with plans to grow who are being held back by traditional lending routes.

In reaction, many businesses, especially small and medium sized firms on a growth spurt, are choosing to source alternative funding sources. These alternatives are now said to contribute £1.5 billion to SMEs in the UK annually.

For the full story at growthbusiness.co.uk CLICK HERE