Recent developments in the alternative funding scene involve the introduction of new legislation by the government which includes help for small and medium businesses to seek out alternatives sources of finance if the big banks turn them down.
The Small Business Enterprise and Employment (SBEE) Bill, which brought in the legislation, seeks to introduce measures that will require banks to help businesses it refuses to fund with alternative options.
For small businesses this means they can now choose to have their key information passed on to government designated platforms that will help match them with alternative lenders. This proposal was consulted by the government earlier this year in March 2014 and a summary of responses which confirmed widespread support for the proposals, was published in August. The SBEE Bill is expected to come into force in 2015.
The government in a statement said that over half of SMEs who seeks finance for the first time and get rejected never try to seek funding again.
