Small businesses need “flexible debt repayment schemes” in order to survive the next 18 months, a leading industry report claims.
The quarterly SME lending monitor, by online business funding marketplace Funding Xchange, highlights the need to address the stresses currently experienced by up to 40% of the businesses who have borrowed from alternative lenders.
Funding Xchange is an online portal which directs small businesses unable to access funding from their high street bank to other lending providers.
The data shows two out of every five businesses that currently have loans from “alternative lenders” are now in discussion with the lenders, as they are struggling to fulfil their repayment programmes as a result of the coronavirus lockdown impact.
“Alternative lenders” have provided another option for business who are unable to access funds from their high street bank.
They established themselves following the last financial crash, as