Evidence shows more are turning to peer to peer borrowing

A recent survey has revealed that only 31 per cent of small and medium enterprises (SMEs) that have been established within the past 10 years are now likely to approach their bank when they are looking to obtain business funding.  This compares with 61 per cent of businesses that are between 10 and 20 years old, and 71 per cent of businesses established for 35 years or more.  These figures show that more and more younger SMEs are now recognising the financial benefits of looking beyond their bank and it proves that they are increasingly attracted to alternative financing and in particular to the benefits of peer to peer borrowing.

Certainly this trend is something that we at Synergy Commercial Finance have been aware of for quite some time and we have been approached by an increasing number of more recently established companies who are looking to investigate the financial benefits of alternative business funding, especially peer to peer borrowing.

One of the major reasons for this switch from traditional banking is that alternative finance sources are far less reliant on asset-based securities.  Instead modern peer to peer borrowing sources are much more likely to look at how well a potential borrower is performing.  They will be more inclined to consider factors such as cash flow and profitability rather than physical assets.

Younger companies, especially those operating within modern business sectors such as IT, telecoms and marketing, are far less likely to be ‘asset rich’, even though they may be extremely successful and profitable.

This alternative finance philosophy certainly matches the Synergy approach.  Thanks to our unrivalled panel of funders that now numbers well in excess of 200 lending sources – including many companies that specialise in niche market lending as well as providing peer to peer borrowing facilities – we are in a unique position to satisfy every type of commercial finance requirement.

Our national network of independent commercial finance brokers also includes many specialist finance professionals who have extensive experience in serving the SME sector.  They are fully aware of the changing nature of today’s business environment and are geared to satisfying every possible funding requirement – whether it is from established banking sources … or by offering alternative finance solutions, including peer to peer borrowing facilities.

If you are looking to arrange financial support to implement your own business plans then you really should discuss the many options available from Synergy Commercial Finance.  Whether bank-based, or from one of our extensive catalogue of alternative finance sources, including peer to peer borrowing opportunities, we are certain that we can tailor a funding package that will match your needs and your financial criteria to perfection.  You can call us on 01904 481 786.  You can also email: enquiries@synergy.finance or you can send a message using the online form on our Contact page.

Contacts
AFS Group, Asset Finance Solutions & AFS Compliance
  • Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB
  • Tel: 01254 958777
Synergy Commercial Finance
  • Lindum Business Park, York Road, Elvington, York YO41 4XR
  • Tel: 01904 481786