A recent survey revealed that many of Britain’s small business owners have used alternative sources to borrow the cash they need.
This is according to freelancer website PeoplePerHour, which polled its users and asked them about how they financed their businesses.
Of the 1,000 firms surveyed, 15.6% said that they had turned to family and friends when they needed start-up funds. Meanwhile, only 2.7% of those who responded had raised funds via a traditional bank.
Many had used multiple sources to find the finance they needed. Of those polled, 31% had raised funds from two sources, and 6.2% had utilised three methods to generate capital. Despite this, most were not able to raise all of the funds they wanted, with only 19.4% reaching the full amount that they had set out to achieve.
In the UK, the number of people setting up their own companies has soared. During 2014, 581,000 new businesses were registered in the UK, which is more than one per minute.
For many firms, finance continued to be an issue once they were up and running. Of those surveyed, 37.1% said that cash flow was the biggest headache for them. Over a quarter, meanwhile, said that maintaining access to funding was a big issue.
At DJB, we help all kinds of firms to raise the funds they need using asset based lending and other innovative methods. We can help you too, all you need to do is to pick up the phone or drop us a line.