New generation of SMEs are more open-minded about finance

  • Anil Kanda
  • 11 Nov, 2015

SMEs established in the wake of the financial crisis are more likely to consider alternative finance and are more open minded about asking advice, according to a new survey.

The British Banking Insight poll conducted by ICM questioned 5,000 SMEs across the UK. It found that over a third (36%) of small businesses established after 2010 would consider using alternative finance, compared to 18% of firms founded before 2000. Meanwhile 42% of the younger firms would consider asking family and friends for investment, compared to just 22% of the pre-2000 firms.

The survey also showed that the newer companies are also more ready to use financial advice sites or ask family and friends for guidance.

John Leech, Business Relationship Director at Ashley Business Finance said: “A whole generation of businesses have grown up in the wake of the financial crisis and they have a different attitude to seeking funding. They have never been able to rely on the banks for finance so have had to be more resourceful and open-minded.

“Many older companies still see the banks as first port of call and are unaware of the huge growth in the alternative finance sector. They should be aware there are other options available – and in many cases, may can get a better service and find products more suited to their needs such as a short term business loan or a longer term invoice finance facility.”