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