The finance market is ever-changing particularly among younger, more modern businesses who are shunning the traditional High Street banks in favour of alternative finance providers.
This the finding of survey of 512 small businesses carried out by ThinCats, a fintech lender to mid-sized SMEs.
The survey found that of businesses less than ten years old, only 32% would consider their bank to be their first port of call. This contrasts with businesses over 35 years old where 71% would default to their main bank. When it comes to working with an alternative finance provider, 23% of younger businesses are more likely to feel comfortable with this approach compared to 4% of the oldest SMEs.
Not surprisingly, where decision makers were aged under 35, 65% said a traditional High Street bank was not the first place they would go for funding. This contrasts with decision makers aged 55 and over, where it was just under 30%.
Sectors such as IT, telecoms and marketing, which are traditionally knowledge or service-based are those leading the way in moving towards alternative finance providers.
Worryingly, 30% of SMEs who were rejected by their first-choice lender, stopped searching for external funding altogether. This suggests that many businesses, of whom 55% said high street banks were the first lender approached, are potentially giving up when there are suitable alternatives available.
This demonstrates that more still needs to be done to highlight the range of alternative finance providers in the marketplace.
Hi Rob, it was so interesting and entertaining listening to you at the Kevin Green Wealth Coach Workshop in Reading this weekend! I didnt realise you can find Finance proposals such fun!. Brilliant tips! Thanks.
I wanted to thank you for such an insightful, energetic, and entertaining talk at the Kevin Green Wealth event on securing funding and creating a successful plan. It was brilliantly executed and a pleasure to listen to and the ideas I’ve learned are definitely going to help me in going forward.
Further to your recent presentation at LEAD Wales just wanted to say it was very refreshing to see somebody talk passionately and positively about finance, very insightful!
Rob kindly agreed to attend the recent Pontypridd RFC sponsors networking evening and delivered what can only be described as an excellent talk on 5 Tactics to Boost Your Business and Your Profits. He kept the audience engaged throughout and the feedback from everyone was excellent. Rob is very knowledgeable on business and finance and on top of that is a genuine nice guy. We hope to have him back at a future event and I have no hesitation in recommending Rob’s services.
Rob delivered a series of 3 workshops aimed at understanding how finance houses look at finance propositions with the aim for us as a team to deliver more of a bespoke offering to our customer base. The training was delivered to a mixture of staff who work with new businesses start-ups and existing established businesses across Mid & South West Wales. Rob delivered the training with an abundance of passion and has really helped my team look at financial propositions in a different light, many thanks again Rob and I look forward to work with you in the near future.