Recent figures out indicate that bank lending for small businesses is at a particularly low ebb at present – in April, they tumbled by a staggering £700 million, which is startling, given they currently account for 85% of small business finance, writes James Day, social media manager at Ingenious Britain.
Whilst the government have introduced the Funding for Lending Scheme, injecting £80bn into providing credit-easing measures and thus making finance more accessible and available for small businesses, the above statistic appears to show this is not working.
Whether this is down to the banks, the exposure & clarity the scheme has been given, or the small businesses themselves remains to be seen.
But enough of the doom-and-gloom. There’s a new kid in town, who’s taking the traditional forms of finance and wringing them out to dry.
Ladies and gentlemen – I give you crowdfunding.