Seven of the biggest AltFinance platforms have teamed up to create a portal for SMEs in need of funding.
Alternative Business Funding will offer SMEs an interactive method of tracking down the right platform for them. The platforms that have partnered in forming the portal are Crowdcube, Funding Circle, Market Invoice, Seedrs, Platform Black, pensionledfunding.com and Zopa. These platforms account for 85% of alternative finance for businesses market, and have provided more than £580 million to SMEs between them.
Adam Tavener, Chairman of pensionledfunding.com and the man behind the new portal, commented:
“We see this portal as a genuinely disruptive influence, as it will shake up the SME finance sector and drive the current inefficiencies from the system.”
The creation of Alternative Business Funding was prompted by the Breedon report – which called for better signposting of the alternative finance options available to an SME if it is rejected by the banks. The hope will be that banks can point businesses that they view as unsuitable in the direction of the portal. Such an action does not constitute financial advice on the part of the bank.
“All of the funders involved in the portal are determined to significantly enhance the availability, clarity and quality of alternative funding solutions to both SME’s and major Banks wanting to refer unsuccessful applicants.”
The launch of the portal could not be timelier in light of the comments made by Vince Cable at the AltFi Summit yesterday. The Secretary of State for Business, Innovation and Skills stated:
“I am keen to oblige banks to refer failed loan applicants to alternative finance providers”.