In a turbulent economic landscape, where does the average UK SME turn for financial solace?
Traditional banking avenues, once considered the backbone of small businesses, are retreating.
Enter FinTechs – the unsung heroes picking up the baton.
The Relinquishing Grip of Traditional Lenders
When the British Business Bank disclosed a decline in equity finance for UK SMEs by 11% to £16.7 billion, it painted a sombre picture of 2022’s financial ecosystem.
Market volatility in the latter half of the year exacerbated the situation.
While the reasons may vary, one fact remains: traditional lenders are increasingly distant from SMEs.
Why is it that half of the businesses found funding easier to secure prior to the cost-of-living crisis?
The Ever-Widening Chasm: Banks and SMEs
There’s a palpable disconnect. Small businesses are constantly voicing that banks no longer resonate with their business needs.
Could it be attributed to banks’ diminishing awareness of evolving business models and needs?
With conventional banks dancing to an intricate tune, FinTech platforms are emerging as the straightforward alternative.
The nimbleness of FinTechs, combined with their technological edge, has resulted in SMEs finding them more approachable and flexible than traditional lenders.
An Ode to the Agile: Embracing the Fintech Wave
SMEs, in their quest for sustenance and growth, need not look too far.
With the traditional behemoths sidelining their needs, it’s the era of FinTechs to shine.
Their understanding of contemporary business models, combined with their agile lending structures, makes them an ideal partner for SMEs.
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
