An interesting read outlining the benefits of borrowing outside the government Bounce Back Loan (BBLS) scheme through high street banks. Funding Xchange is the UK’s leading online platform that connects borrower with lender, whilst offering a range of options and alternatives that high street banks do not. FXE’s main interest lies at the heart of the customer, confirming flexible loans, each with an affordable payment plan unique to the borrower’s needs. With a higher demand for funding during the pandemic, along with the constraint’s banks put on loans to small business, as well as only a handful being accredited to offer BBL; has driven in-need businesses to seek other forms of funding. Funding Xchange has seen a dramatic increase in customers coming from challenger banks looking for a loan: “Before the crisis, it was about 15% of customers and now it’s upwards of 40%.” – states Funding Xchange’s CEO and co-founder Katrin Herrling.
Capco and Funding Xchange are of the same mind with regards to making it easier for SMEs to gain funding with an affordable repayment plan without tarnishing future funding opportunities. Both urge that cooperation and support continues across the entire financial services sector to offer the best funding solutions in order to help SME’s recover from the challenges of 2020.
More information can be found here.