Alternative Lending Marketing a Lifeline for SMEs as Red Tape Reduces Traditional Access

Over the last decade, it’s become increasingly challenging for SMEs to access the finance they need from traditional high street lenders. But the alternative lending market is fast growing and provides an invaluable route to funding, says well-connected facilitator GIC Capital.

Red tape and strict criteria that often doesn’t reflect the nature of SME business models means that the UK’s smallest businesses are often turned away empty handed when they approach mainstream lenders such as banks. As significant contributors to the economy, it’s vital that SMEs have access to the finance they need, allowing them to grow, explains GIC Capital.

Kennedy Zvenyika, Managing Director of GIC Capital, said, “SMEs are in desperate need of lending options that reflect their business model and their cash flow. With the right support and lending options in place, the UK can cultivate a thriving SME sector that supports the economy and innovates. For SMEs that have been turned away from the usual lending operators, the alternative market offers a lifeline. Alternative lenders that understand SMEs are typically more flexible, reflecting the diverse needs of small business.”

Small businesses face a huge range of challenges when it comes to their cash flow, including accessing finance. GIC Capital works with a network of partners to provide efficient working capital for SMEs by acting as a facilitator liaising with alternative providers. Recognising that one of the key obstacles SMEs face is issues with late payment and cash flow, the Pay as You Trade service has been carefully designed with this in mind. Giving businesses the flexibility to pay only when they have also been paid, it helps to manage cash flow and payment obligations.

Zvenyika added, “When first researching lending options, businesses will often approach the usual high street lenders. But they could be missing out on more adaptable, suitable finance providers if they don’t investigate the alternative lending market too. With our support, SMEs can cut through the red tape and time-consuming processes to access the finance they need quickly.”

To find out more visit giccapital.co.uk.