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The British Bankers’ Association (BBA) has recently released new statistics on high street banking, which demonstrate that business borrowing has sharply declined since January and sees growth slow-down year-on-year compared to the recent months.
CEO of peer-to-peer lending company ArchOver, Angus Dent, commented on the effect of continued stagnation on the SMEs, and the ways alternative finance may fuel up growth.
Angus Dent, CEO
“Although overall business lending grew year-on-year in February, most of the increase is down to borrowing by larger companies, while SMEs continue to lose out. Not only that, but the increase is offset by a steep decline since January and set against a much-declined base – we’re only just returning to 2007 lending levels almost a decade after the crash. This is not growth – it’s repair work.
“The message to SMEs is that the lean times are not over. The banks are still on edge. If smaller companies are to develop and thrive through the uncertainty of Brexit, they must look at alternative ways of accessing finance. By borrowing directly from investors through peer-to-peer (P2P) platforms, businesses can bypass institutional nerves and quickly obtain the essential funds they need to boost growth.
“When SMEs succeed, the whole economy succeeds. P2P lending will play an essential role in getting small UK businesses back on track, building a strong base for increased growth in the future.”