Advice For The Alternative Finance Sector


WaterWallpaper

 

In a thoughtful piece on smallbusiness.co.uk , Paul Mildenstein discusses the key principles that the alternative finance sector must learn from the banks in order to safeguard the future of the sector. For Mildenstein, whilst the rapid growth of the sector has made access to finance a reality for small businesses again, it's likely that the sector will start seeing some growing pains as a result. The concern is that as the sector continues to grow and mature, "there's a risk that it will morph into a younger model of the old lending guard".

As a result, he believes that there are seven key principles which alternative finance should stick to in order to maintain itself as an appealing alternative:

  • Simplicity
  • Suitability
  • Access for all
  • No ties
  • Modern underwriting
  • Education
  • Regulation

The article covers many sectors of alternative financing, of which crowdfunding and 'peer-to-peer' market lending are just a portion. The overall tone and analysis is positive in advising the sector to stick to its founding values and keep in mind the reasons behind the recent surge of demand for alternative funding.

M&CLogo

Before committing any capital, potential lenders should be fully aware of the risks of lending. See the risk warnings on our Home page. See also the detailed statements of risk in our Frequently Asked Questions.


FOLLOW MONEY&CO. ON TWITTER

Search news

You may put double quotes around your search to search for literals. Max. 4 words inside quotes (dashed words count as one word).

Allowed symbols: " ' & -

More news

2019
November
October
September
August
July
June
May
April
March
February
January
2018
DecemberNovemberOctoberSeptemberAugust
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
MayMarchFebruary

Search blogs

You may put double quotes around your search to search for literals. Max. 4 words inside quotes (dashed words count as one word).

Allowed symbols: " ' & -

More from blogs

2019
2018
2017
2016
NovemberOctoberSeptemberAugustJulyJuneMayMarchFebruaryJanuary
2015
DecemberNovemberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary
2014
DecemberNovemberOctoberSeptemberAugustJulyJune



Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.