SMEs moving away from Banks

According to the latest report published by Thincats today, SMEs are trending towards alternative finance providers.

Amongst younger business owners in particular, traditional banks are a less useful resource; with 65% of businesses with decision-makers under-35 preferring to look elsewhere for funding as a first port of call. The same trend applies to business age with only 32% of those businesses under 10 years old looking to the banks first for funding, compared with over 70% of those businesses more than 35 years established.

The more worrying statistic uncovered was that 30% of businesses seeking funding would give up if not able to secure funding from their first choice lender (51% of whom would speak to banks first) despite there being potential alternatives available.

https://londonlovesbusiness.com/smes-are-shunning-traditional-banks/

​https://www.bridgingandcommercial.co.uk/article-desc-15192_just-32-of-young-businesses-rely-on-their-bank-as-first-lender-of-choice