Alternative lendingThere are countless non-bank lenders stepping in where banks cannot provide, with a variety of products aimed specifically at SMEs. Peter Alderson, managing director of LDF, says that “the options available to SMEs have generally lagged behind the development in the personal market, but this is undoubtedly changing”. Alongside all the new options SMEs have outside traditional banks, the acceleration of fintech has made those options even more accessible via the internet.
LDF, for example, now enables businesses to access asset finance online via its Lendinghive platform. This type of finance allows businesses to borrow to purchase the equipment they need and spread the cost over its useful life. Other online platforms offer invoice financing facilities and simple loan products, all giving businesses an instant decision and rapid access to the money.