Crowdfunding your business

High street Banks are continuing to drag their feet with regards to lending to SMEs whilst crowdfunding websites are moving forwards and matching up entrepreneurs with much needed capital.

In the UK, the rapid growth and increased awareness of crowdfunding has ultimately led to the FSA to warn that such platforms are only suitable for investors that are able to grasp the potential risks associated with P2P lending.

Bank to the Future is the one of the new players in this market – aiming to connect businesses with investors, however this platform allows businesses to raise different types of finance in one place, whether debt, equity, or donations from consumers.

The two most established players in the UK P2P lending market are Funding Circle and Crowdcube. Funding Circle has loaned £30m to 703 businesses to date with average gross yields of 8.3% on money loaned.

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