The UK Business Love Affair with Finance from Beyond the Banks

The UK Business Love Affair with Finance from Beyond the Banks The results are in. The UK's Alternative Finance sector broke the £1bn barrier in 2013. This infographic shows how much our businesses love to secure finance from beyond the banks. HOW BIG IS THE UK'S ALTERNATIVE FINANCE MARKET? Total raised 2013 £939m (excluding donation-based crowdfunding) Total predicted 2014 £1.6bn Total predicted business finance for SMES 2014 £840m SMES in England and Scotland have benefited from innovative business lending, which has increased the mix of commercial finance available to entrepreneurs. O Adam Tyler, Chief Executive, NACFB * LET'S LOOK AT THE TRENDS The Growth of Key Alternative Business Finance Solutions by Transaction Volume Total Growth 2011 2012 2013 Invoice Trading £4m £36m £97m 487% Donation-Based Crowdfunding £215m £260m £310m 20% Peer-to-Business Lending £21m £62m £193m 203% Peer-to-Peer Lending £68m £127m £287m 107% Equity-Based Crowdfunding £1.4m £3.9m £28m 371% Reward-Based Crowdfunding £0.9m £3.9m £28m 371% Total Alternative Funding £26.7m £104m £322m 254% raised by SMES How many SMES are Raising 2011 2012 2013 Finance with Alternative Providers? 550 1,406 3,706 (excludes reward-based crowdfunding) 60% of UK small businesses have used (or plan to use) alternative finance WHY DO BRITISH SMES LOVE FINANCE FROM BEYOND THE BANKS? say access to external funding is difference between survival and failure 12% of SMES 10 UK small businesses expect 2014 to be a better year than 2013. and are preparing for it accordingly 38% say sources of funding other than the banks will be the future for business finance of SMES SME grow th is booming in 9 out of 10 UK industries. outpacing big businesses "Alternative finance works best when integrated into a wider business finance strategy - including lending from the big banks" Platform Black SOURCES: startups.co.uk • fundingknight.com • platformblack.com • nesta.org • rebuildingsociety.com www.platformblack.com