News Column

Alternative lending hits billion-pound mark

August 3, 2014

By Vicki Owen, Financial Mail on Sunday, London



Aug. 03--Mondy provided to smaller firms by alternative online funders rose from pounds sterling 318 million by last September to pounds sterling 852.5 million by June, according to finance firm Fleximize.

It estimates that during the period, the amount of funding provided rose by about 11.7 per cent a month, equivalent to about pounds sterling 2.2 million a day.

Fleximize, which offers loans and revenue-based finance _where repayments are higher in good months and lower when income drops _believes online alternative business lenders might have provided more than pounds sterling 1billion in total by the end of August.

Max Chmyshuk, founder and managing partner at Fleximize, said: 'Reaching the billion pound lending benchmark is a huge milestone for alternative lenders in the small firms sector. As the industry works more closely with government and banks, alternative finance will become better recognized, allowing us to reach pounds sterling 2billion and beyond quickly.

'We are hopeful that legislation encouraging banks to work with alternative finance institutions will be introduced.'

Businesses used online lender MarketInvoice to get funding against invoices of pounds sterling 25million last month,

40 per cent more than its previous record and more than in the whole of 2012.

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(c)2014 Daily Mail (London, )

Visit the Daily Mail (London, ) at www.dailymail.co.uk/home/index.html

Distributed by MCT Information Services


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Source: Daily Mail (London, England)


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