FSB launches alternative funding platform
Written by Chris Lemmon
The Federation of Small Businesses (FSB) has launched a new FinTech platform, which aims to help further the success of the UK’s small business and self-employed communities by matching them with alternative lenders.
The recent Small Business Index Q4 from the FSB found that confidence within the sector has fallen for only the second time in the last five years. FSB noted that access to funding is crucial to the small business sector, which accounts for an annual turnover of £1.9 trillion a year – 51 per cent of all private sector turnover in the UK.
The new funding platform uses intelligent matching technology to match applicants with finance providers. A pilot of the platform for FSB members in three UK regions revealed that the average amount of finance a small business applies for from an alternative finance provider is £39,000 – half the amount sought from banks.
Powered by Finpoint, the platform is regulated by the FCA and offers free access to more than 100 lenders, with AI technology matching entrepreneurs and businesses seeking funding.
Dave Stallon, commercial and operations director at FSB, said: “We’re so pleased to be able to offer this exciting platform to our member base Although it’s harnessing the latest innovations in tech it offers a very simple way to access finance, as well as access to human financial advisers. It will transform the business funding market and is a real step change for small businesses.”