BANKING

Guided by alternative lender iwoca , as well as others , we examine whether banks are meeting small businesses ’ lending needs and how things could improve

WRITTEN BY : WILL GIRLING

There has never been an ‘ easy ’ time to run a small business . From struggling to carve out a niche in the market to maintaining a solid pricing strategy and ensuring exceptional customer service , it is no surprise that only 50 % of small-medium enterprises ( SMEs ) survive past the five-year mark . However , the arduous conditions brought about by the COVID-19 pandemic have only served to accentuate one struggle in particular : securing adequate funds to stay afloat .

As world economies seek to recover from a year ’ s worth of stagnation , bolstering SMEs ’ success will be an important factor in their restabilization . Yet , with 80 % of their loan applications rejected by high street banks , can it be said that SMEs ’ needs are being adequately met ? As well as addressing the cultural shortcomings that allow this problem to persist , finding an answer to this question requires careful consideration of what alternative lenders and fintechs are doing to plug the gaps .

To gain a frontline perspective on this issue , we spoke with Colin Goldstein ( CG ), Commercial Growth Director at iwoca , one of Europe ’ s leading alternative business financiers . His comments steer the conversation and are then supplemented with further analysis .

62 June 2021