Finance and Insurance Businesses consider wide range of options for financing

Businesses in Finance and Insurance are likely to consider a diverse range of options when seeking finance or information to expand their business, including turning to friends and family, the Business Banking Insight (BBI) has found.

An ICM poll of 5,000 SMEs across the UK, including almost 200 across the Finance and Insurance sectors, found that 26% of businesses in the Finance and Insurance sectors would consider approaching acquaintances and relations for business investment and 45% of businesses would turn to their friends and family for guidance around finance.

In addition, 32% of companies in Finance and Insurance would consider peer-to-peer lending if they wanted to expand their business, compared with a national average of 23%.

Finance and Insurance businesses are also more open when it comes to considering using different sources of guidance when financing their companies. 32% would use a mentor, 69% would turn to their bank and 47% would seek out financial advice websites. This compares to national averages of 37% consulting a mentor, 70% their bank and 41% looking at financial advice websites.

Economic Secretary to the Treasury Harriett Baldwin said: “Britain’s small businesses are the backbone of our economy, which is why a key part of our long term plan is making sure they can access the finance they need to grow, create jobs and succeed. Data collected as part of the Business Banking Insight survey shows that our plan is working, and that our smallest businesses are increasingly considering alternative finance providers.”

Mike Cherry, Federation of Small Businesses Policy Director and spokesperson for the BBI, said: “The BBI can help companies of all sizes get the right finance. Accessing the best product for your business is critical to growth and future investment. The BBI should be part of that journey to allow you to see what other businesses like yours have found useful and which providers might be right for your needs.”

John Longworth, Director General of the British Chambers of Commerce and spokesperson for the BBI, said: “The divide between older and newer companies in attitudes to seeking business finance and guidance highlights a change in approach by businesses’ to driving growth. The finance needed to drive growth can and should be tailored to the specific needs of each business, so it’s vital that traditional lenders and advisers adapt to meet the changing demands of SMEs.”