(PRWEB UK) 3 June 2014
Business cash advance provider Liberis has become the first revenue-based funder to join the rapidly-expanding finance portal alternativebusinessfunding.co.uk – which aims to support SMEs requiring non-bank funding solutions.
Liberis’ inclusion foreshadows a widely speculated announcement in the Queen’s speech (4th June) which could compel banks to refer SMEs they have rejected for loans to alternative funding options. Liberis is a significant addition to the funding portal - broadening the range of funding options on offer, especially for micro (0-9 employees) and small businesses that are often turned down for bank funding.
Worryingly for SMEs, OnePoll research, commissioned by Liberis and launched today, shows that almost a third of micro businesses (32 per cent) have been turned down for bank funding. As a result, almost two thirds (60 per cent) had cashflow problems or missed a business opportunity. The research also shows micro businesses (62 per cent) are less likely to seek alternative funding sources than their larger SME counterparts, mainly because they don’t know where to look.
The OnePoll research also found that almost two thirds of micro businesses (60 per cent) said being aware of an online portal explaining different alternative funding options would be useful. The Breedon Report recommended in 2012 that a system of ‘signposting’ rejected customers from the banks to the alternative non-bank sector would be highly effective in distributing SME finance.
Liberis is the UK’s largest provider of business cash advance and has facilitated funding of more than £75m to SMEs, with a customer renewal rate of 75 per cent. It provides businesses with a cash injection, from between £2,500 and £300,000, based on future credit and debit card sales. Payback is only made as the business earns, so mirrors cash flow. It’s unsecured funding so no asset-backed guarantees are required.
Liberis CEO Paul Mildenstein said: “It’s great to be part of this unique resource for SMEs that are unable to get bank funding, or are looking for a genuine partnership approach to funding their business. We bring to the portal another valuable and unique funding source, especially for micro and smaller businesses that need flexible finance that fits their business. The portal has fast become an indispensible source for all SMEs, so finding an appropriate source of money has never been so straightforward and with such high success rates.”
Since launching in March, the alternativebusinesfunding.co.uk portal, which brings market-leading alternative financers together for the first time under one umbrella, has already helped thousands of business owners discover alternative funding options suitable for their business, through its free, simple to use funding traffic-light system.
Adam Tavener, chairman of pensionledfunding.com and catalyst for the alternativebusinessfunding.co.uk collaboration, said: “We’re delighted that Liberis has joined the portal as it provides another alternative type of funding for businesses owners, particularly those at the micro end. And, with Zopa, Angels Den, crowdfunding and pension led-funding on the portal we have many options, including those for under-served start-ups that may have no filed accounts or strong credit histories – often required by banks and Peer-2-Peer or invoice trading.”
Other key findings from the Liberis research included:
Lord Young’s Report on Growing Micro-businesses, published in May 2013, identified the huge contribution the UK’s 4.6 million micro businesses make to the country’s economy – accounting for 7.8 million jobs and 20 per cent of private sector turnover. Lord Young commented in the report: “A criticism I hear from businesses is that they don’t know where to find finance when they need it. These businesses not only report the difficulty of accessing bank finance but also remain unsighted about alternative finance options available to them.”
Notes to editors:
About the Liberis Research:
The survey was carried out amongst financial decision makers in 500 SME businesses by OnePoll between 21st -28th May 2014.
alternativebusinessfunding.co.uk provides a free and easy way for SMEs to find alternative business funding. It aims to make it simple for time-constrained business-owners to contact the right funder, with only a few simple questions and no personal contact information required to use the site.
The unique collaboration brings together the market-leaders for the main forms of alternative business funding for SME finance, so all types of funding from short to long-term loans /debt/ equity or self-investing are covered.
Funding participants already cover over 85% of the alternative business funding market* in equity angel & crowdfunding, invoice trading, peer-to-peer, pension-led funding and now revenue based funding, with plans for more to join the collaboration in the near future.
Launched in March 2014, just weeks before the Government Referral consultation was announced, alternativebusinessfunding.co.uk is committed to creating a more collaborative environment for business funding, aimed at simplifying SME owners’ search for finance to help support their businesses and also a place for the major banks to redirect customers. It is supported by the CBI. (*Altfinnews market share)