Small businesses are underserved by traditional lenders
Trends in the market
SMEs are strategically important to economic growth
borrowed through PPP, £70bn borrowed through CBILS/BBLS3
Significant acceleration in adoption of online borrowing
increase in searches for online business loans in the UK4
Strong demand from investors despite recession
investor capital raised since the beginning of Covid-19 to lend to UK and US SMEs5
SMEs expect to have ongoing finance needs
of SMEs expect to require finance in the next 12 months, primarily for growth or investment6
1 OC&C analysis: Target addressable market excludes commercial mortgages, loans / debt products <5k and >500k in local currency and loans with APR >25%. In US, higher minimum threshold of $25k.
2 Data from the Federation for Small Businesses and Small Business Administration.
3 Cumulative PPP data published by the SBA; cumulative CBILS and BBLS lending data published by HMT
4 Google trends
5 Funding Circle institutional capital raised accredited to CBILS and PPP
6 Data from the Oxford Economics and Funding Circle 2020 Economic Impact Report