17 Bankable Facts about Alternative Finance in 2017Rob Straathof Last Updated: 3rd April 2017
1) The UK is at the centre of the European alternative finance sector which grew 84% last year and facilitated £3.2 billion in investments, loans and donations
2) The UK alternative finance sector is predicted to be worth £12.3 billion by 2020
3) 52% of SME owners are now aware of finance options beyond traditional banking
4) According to Shelbourne Financial, Peer-to-peer lending is the largest market segment of alternative finance, with 366 million recorded in Europe
5) The average deal size in crowdfunding is now approximately 459,000 in the European sector
6) The equity-based crowdfunding sector has grown by 295% from £84 million to £332 million since 2015
7) Retail and Wholesale was the most funded sector for peer-to-peer lending globally in 2016
8 ) There is now a high degree of automation in peer-to-peer lending
9) Online alternative business funding has increased considerably
10) Merchant cash advances are projected to reach $15.3 billion for US SMEs
11) 68% of SMEs are planning on taking out business finance in 2017
12) 50% of SMEs will be raising finance with the intention of expanding their business
13) 25% of small firms that apply to banks have their loan application rejected
14) More than 60% of SMEs are concerned with their ability to finance long-term growth
15) 80 to 90% of small businesses fail because of poor cash flow
16) Hotels and B&Bs are looking to borrow £100,000+ for upgrades to bedrooms and service
17) Business overdraft lending by banks is down 50% in four years
sources:
http://moneyhighstreet.com/17-facts-alternative-finance-2017/http://www.consultancy.uk/news/13691/europes-alternative-finance-market-hits-91-billion-in-first-quarterAnd the rest of the world still has some catching up to do. Invoice trading is the fastest growing sector. It grew 1057% from 7 million ($7.8 million) in 2014 to 81 million ($90 million) in 2015. In comparison, invoice trading had a volume of 388 million ($433 million) in the UK 2015. In the US, invoice trading is relatively nascent, with only $32 million in volume in 2015.
source:
http://www.businessinsider.com/the-european-alternative-finance-industry-is-lagging-far-behind-the-us-and-uk-2016-9