Alternative lending takes off

Alternative lenders step in as demand for larger loans rises

Alternative lenders are stepping in to meet the rising demand for larger loans by UK SMEs, according to a survey conducted by fintech firm Iwoca. The survey found that in Q4 2023, SMEs demanded loans of over £100,000, a 15% increase from the previous quarter. Traditional banks, which have tightened their lending criteria, are losing out, with 77% of brokers noting a reduced lending appetite from such institutions. As a result, 71% of brokers are turning to alternative lenders instead. Colin Goldstein, director of commercial growth at Iwoca, said: “The continued lack of support from the banks – over successive quarters – not only demonstrates the shifting SME lending landscape, but is also hindering a huge source of potential growth for the UK economy."