At Last an Alternative to Banks

Running a Business

I read a very interesting article in the FT over the weekend about the popularity of angel investors. The timing of this is suspicious especially this week when one of my clients, that has been established for over 30 years was turned down for a bank loan which was going to be used to expand his product range with a revolutionary product that complimented his existing product. The bank gave the excuse that this new product was deemed to be a start up business and did not proceed any further. He has now found an investor who is willing to back the business, create new jobs and expand the business.

I have discovered that angel investing is a real alternative to bank lending and we have started a small business club that helps introduce business owners with potential investors. Our next event is at The Eight Club near Bank Station on Wed 14th November. The events are an informal way to find out about angel investments and meet people who have been there and done it. I have also come across a number of online peer to peer lending websites that also appear to fill a gap left by the banks namely, Seedrs, Funding Circle, Crowd Cube to name but a few.

The most intriguing story regarding the banks comes from a man in Burnley who has set up his own bank to lend money at cheap rates to local businesses and pay attractive interest rates to savers. The bank was featured on Channel 4 and once again demonstrates there is an alternative to the traditional banks.