With over 5000 SMEs across the UK actively looking for investment at any one time, there is a clear wealth of ideas and innovation currently in the market. Alternative finance companies – such as IW Capital – have transformed the arena, leaving a lasting impact, and offering businesses on opposite ends of the scale a wider choice in funding. These alternative finance providers now make up 12% of the market for lending to the UK’s small businesses, with the hi-tech and business services industries seeing some of the highest levels of finance raised in the country.
But why is alternative financing the way forward?
• More choice- The Cambridge Centre for Alternative Finance report showed that nearly 20,000 SMEs raised finances through alternative online platforms, with borrowing totaling £2.2 billion. With the uncertain position of banks tied to the political and financial make-up of the UK, SME’s are looking for more innovative methods of raising funds.
• More time saved- Alternative finance disintermediates the investment arena, offering growing SMEs deals with terms historically the preserve of institutional investors.
• More expertise- IW Capital is committed to understanding the requirements of SME’s in the UK to take their businesses to the next level. Alternative financers often invest in emerging companies they are passionate about and relate to.
To facilitate these new levels of investment, on Wednesday 4th July IW Capital hosted an investor evening for HNW investors interested in investing £10k+ into flourishing SMEs. The event was a great chance to hear from some of the innovative companies on IW Capital’s portfolio – such as WeSwap, Ubamarket and Hill and Friends – as well as an opportunity for investors to meet the team and hear from members of the investment committee.
SME lending and investment is rapidly increasing. The business landscape of the UK is changing. You cannot afford to be left behind.