Chris Mitchell, Senior Business Development Manager at LendingCrowd, was invited to participate in a Scottish Enterprise event in Dundee yesterday to examine the various funding options available to small and medium-sized businesses.
Accessing finance remains a challenge for many businesses. At his Mansion House speech in June, Bank of England Governor Mark Carney said that SMEs face a £22 billion funding gap. He added: “Almost half of all SMEs don’t plan to use external finance, citing the hassle or time associated with applying. Of those that have approached their bank, two fifths have been rejected.”
LendingCrowd was founded in 2014 to help alleviate the funding gap facing established and ambitious small businesses the length and breadth of Britain. Since we launched, we have delivered more than 730 loans totalling almost £64 million.
In May, we announced a transformational deal that will see Scottish Investment Bank – the investment arm of Scottish Enterprise – and Dutch entrepreneurial bank NIBC provide a combined £18.75 million to be lent across our platform. This will help to fund the ambitions of many more SMEs across the country.
As Chris explained to his audience of business leaders, analysis by LendingCrowd has shown that an estimated 2.6 full-time equivalent jobs are created for each loan we deliver.
A quarter of respondents to our survey said they would have been ‘very unlikely’ to obtain funding in our absence. They said a failure to secure funds would be a ‘missed opportunity’ leading to a negative impact on jobs and investment.
Think Outside The Bank
Speaking after the event in Dundee, Chris Mitchell said: “It was a pleasure to join forces with Scottish Enterprise and Scottish Investment Bank, for this interactive discussion with business leaders in Dundee. Offering a practical guide to funding business growth, the session gave SMEs a useful insight into the wide range of funding available to suit their individual business needs, preparing for funding applications and how to utilise debt to optimise business growth opportunities.
“It was very rewarding to interact with the group, who asked an array of very probing questions around international trade risk amid Brexit, the availability of alternative finance, and how the Scottish Investment Bank and LendingCrowd collaborate to maximise SME growth opportunities. Feedback from the group was excellent.
“Well done to Scottish Enterprise and Scottish Investment Bank for proactively engaging with the business community on important matters and for the kind invitation to participate.”
To find out how LendingCrowd can help you to take your business further, call us on 0345 564 1600 or come along to our next event in Edinburgh on 12 September in association with Edinburgh Chamber of Commerce.