Alternative forms of borrowing and lending are becoming more mainstream according to Paul Aitken, CEO of borro.
Commenting on the recent Bank of England Credit Conditions which showed disappointing lending to SMEs, he said: “Once again we are faced with figures showing the availability of credit for SMEs has not improved over the first quarter, as demand for lending has fallen significantly when it was expected to grow.
“This is most likely down to a continued lack of confidence amongst business owners due to the fragile economic climate, lingering distrust in the banks, and general low morale.
“Our online personal asset-lending model has thrived since borro was launched five years ago. We have seen a huge increase in the number of small business owners unlocking finance from valuable and unusual personal assets in order to capitalise on business opportunities; the average loan value to small business owners, who currently represent over 60% of our client base, rose 41% last year, from £17,000 to £24,000. This continued growth is proof that non-traditional forms of financing are becoming more and more mainstream.”