Europe opts for loans for more alternative companies

Europe opts for loans for more alternative companies

The latest study on alternative financing in Europe, conducted by the University of Cambridge, concludes that the great reception that the new models of business loans are having in front of the big banks has made alternative financing grow in Europe by 144% on last 2014, reaching 2,957 million euros in credit.

New business loans make their way

Alternative financing can be interpreted in different ways, but it is more common to understand it as direct access to credit through online platforms , which is why technological development and access to digital tools make it a trend in regions such as Continental Europe, England and the United States. Without going any further, according to the report of the University of Cambridge, during the last three years loans have been granted to about 10,000 SMEs and startups in Europe alone.

In one of the sections of the study highlights the importance of alternative financing when promoting innovation and create new jobs . But, for the new models of business loans to continue to grow, the regulation of the economic sector is essential. This will facilitate the growth of the market and guarantee greater transparency and protection for consumers and investors.

Alternative financing models, such as collective financing and loans between
Individuals present a challenge to traditional financing theories and traditional financing providers. “

Professor Raghu Rau
Director of Finance and Accounting of the Judge School of Business
(University of Cambridge)

Spotcap bets on business loans

Working as a freelancer or owning an SME is not an easy task, because in addition to having to overcome all the difficulties that we encounter along the way, trying to obtain the necessary financing so that the company comes out is almost impossible mission. Luckily, the changes that the markets are undergoing and the speed with which they do it, are the perfect breeding ground for the creation of economic alternatives that manage to leave behind the traditional banking system, which until now has only hindered all the people that have wanted to take forward a business idea.

The desire to have a convenient and simple way of financing has given birth to entities such as Spotcap , which consider that SMEs are the fundamental basis for a country’s economy to grow . Thanks to business loans, small businesses can count on sufficient liquidity to cover their basic needs and achieve their objectives more easily.