BBA data shows that there were 10% fewer loan applications from SMEs

Jeff Lynn, CEO and Co-founder of Seedrs, said: “The latest data from the BBA shows that compared to Q2 last year, banks reported 10% fewer loan applications from SMEs and that there were around 15% less new loan and overdraft facilities approved. The business finance landscape continues to change and demand for alternative finance, such as the innovative equity crowdfunding space, is set to go from strength to strength over the coming years as mainstream lenders struggle to evolve and support a booming small business community.

“The exciting startup and growth focused businesses that apply to fundraise on Seedrs are increasingly turning to innovative investment platforms that have the skills to understand their specific needs. A ground-breaking new Portfolio Update was issued this week, in which Seedrs analysed more than 253 deals between launch in July 2012 and December 31 2015 during which nearly £100 million was invested across the platform. The three most popular SME sectors in terms of number of funded deals have been Food & Beverage, Finance & Payments and Travel, Leisure & Sport.

“Nearly 60% of Seedrs’ deals during the period were for B2C businesses, with 30% for B2B ones and the remaining 10% for businesses with both B2C and B2B models. Roughly 40% of Seedrs’ deals in the period covered for digital businesses, and 20% for non-digital while the remaining 40% have been hybrid digital/non-digital models.”

To view the full report, please click here