The UK’s largest provider of cash advances for businesses has joined alternativebusinessfunding.co.uk, a fast-growing funding portal for SMEs that have been turned down for bank loans, the company announced today.
Research conducted by OnePoll and funded by Liberis found that 32% of small and micro businesses in the UK have been turned down for funding by banks, even though two thirds of those that applied asked for less than £10,000. Commonly cited reasons for seeking funding include cash flow issues (49%) and plans for growth (46%), although just under a quarter were looking to purchase new stock. Failed applications were frequently reported to cause stress-related health issues, as well as cash flow problems and missed business opportunities. Even so, micro businesses are less likely than their larger counterparts to turn to alternative sources of funding – or even to know they exist.
Alternativebusinessfunding.co.uk is hoping to change that. Since its launch in March, the portal has helped thousands of businesses find financing options that are suitable for them. Liberis, which has lent over £75m to SMEs, is the first revenue-based funder to join the site. The company provides businesses with loans of between £2,500 and £300,000, with payback linked to earnings.
“It’s great to be part of this unique resource for SMEs that are unable to get bank funding, or are looking for a genuine partnership approach to funding their business,” said Paul Mildenstein, CEO of Liberis. “We bring to the portal another valuable and unique funding source, especially for micro and smaller businesses that need flexible finance that fits their business. The portal has fast become an indispensable source for all SMEs, so finding an appropriate source of money has never been so straightforward and with such high success rates.”