The dawn of alternative finance

Monday, March 23, 2015

However, businesses are increasingly looking towards alternative sources of finance. 

Data from AltFi reveals that during the first half of 2014, £1.3 billion was lent through peer-to-peer (P2P) lending and crowdfunding. With a slowdown in bank lending, these new
types of finance have been particularly popular with small firms and start-ups.

P2P: P2P firms connect you with investors across the world. The cost of borrowing through P2P can be lower than the deals you’ll find on the high street.

Crowdfunding: Through the power of the internet you can raise money from a large number of people. You can raise equity and debt finance by pitching your idea on a crowdfunding website and promoting it with social media