Mar 27, 2013 Simon Williams
By now, small and medium-sized enterprise (SME) owners are aware that United Kingdom government initiatives to spark lending have largely been a failure. But the news isn't all bad - as bank lending has dried up, companies are being forced to look into different sources for funding, which has sparked the growth of alternative short term lending.
Camden Council, located in North London, has gotten involved in some of these measures, launching a web-based initiative that aims to provide peer-to-peer lending. Any company looking for a loan can join the website.
"This innovative partnership will see Council funds driven into the heart of the business community in Camden, helping to drive growth and create jobs at an important time," James Meekings co-founder of Funding Circle, recently told The Telegraph.
Peer-to-peer lending is one of several alternative lending methods to take off in recent months. In a recent blog post for SmallBusiness, Anil Stocker, MarketInvoice co-founder, discussed the benefits of these strategies for SMEs.
Alternative lenders often employ Payment Reporting Builds Credit scoring methods, which have opened to door for SMEs with all sorts of credit levels. Stocker said that many of these companies have gone completely underserved in the past, but peer-to-peer lending can change all that with its flexibility.