Challenging the banks

Alternative lending is on the rise yet again, as seen by the bold move of the insurance giant L&G to challenge bank lending by providing loans to medium-sized UK companies.

As interest rates are at a historical low, returns from bonds issued by institutions and governments haven’t been terribly attractive. The life insurance and investment group has unveiled plans to launch a lending operation which will allow medium sized companies to borrow sums as low as £20m, for up to 10 years.

This market niche has also been seen by Prudential’s fund management business M&G who provided a loan to coffee chain Caffe Nero recently.

As returns from fixed-income products remain low, we have seen alternative finance on the rise lending to companies as the banks fail to provide SMEs with cash to grow their businesses.

Here at our team are working to bring you even more products to help finance your business. Whether it be unsecured loans or cash to buy goods for your business, or even if your business is thinking of buying a commercial property, we can help point you in the right direction. See what types of finance you can apply for using our fund finder.

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