By John Reynolds on Tuesday 5 November 2019
Alternative Business Funding will use the funds to try and drive up registration numbers from 25,000 to 160,000 in five years.
Alternative Business Funding (ABF), the government-approved referral platform, has announced a £6m fundraise, as it looks to drive up registration numbers from 25,000 to 160,00 users in five years.
The SME finance platform has appointed boutique advisor Lazarus Consulting to canvass interest in the fundraiser.
Currently, ABF has over 25,000 registered small businesses on its books.
It is now looking to grow its user base to 160,000 in five years, with the goal of securing them over £500m in funding. ABF said it is looking for one or multiple investors.
ABF Chairman Adam Tavener, said: "ABF is at a very exciting time, and with the 'go compare' culture rapidly growing in popularity- we see that it is only a matter of time before, as with other financial products, those businesses seeking commercial finance will go online to compare the funding solutions open to them, before even visiting their bank."
ABF said the funding will be used to speed up the development of ABF's financial technology, which uses AI-powered predictive lending. It will also be used to invest in marketing as well as growing international expansion.
ABF, which has been operating since 2016, provides a means for SMEs to find alternative business funding. It aims to make it simple for time-constrained business owners to contact the right funder, by answering a few simple questions.
The site brings together the market-leaders for the main forms of alternative business funding, so all types of funding from short to long-term loans, invoice trading, peer-to-peer, trade finance and pension-led funding.
ABF was launched in 2014 as the UK's first collaborative SME funding platform, backed by the then Secretary of State for Business, Vince Cable.