According to research by Experian, a vast majority of SMEs rely on bank overdrafts or personal finance to finance their business.
Calling for help from friends and family are also more popular than the several forms of alternative finance. The least well known type of alternative finance was ‘Crowdfunding’, with 70% of respondents claiming they had never heard of it!
The research shows that there is a general lack of awareness surrounding alternative finance – including more established forms such as Angel Investment and Invoice Finance.
In addition, just one in every ten businesses looking for bank funding ‘shop around’ – try ALL of the high street banks when looking for funding, and only 6% would speak to a broker.