Should your business consider private debt funding?
Private debt funding is an important source of finance for smaller businesses in the UK.
A recent report by the British Business Bank, UK Private Debt Research Report 2020Link opens in a new window, revealed that, since the 2008 economic crisis, private debt has become a valuable source of finance for smaller businesses across the UK – with a combined total of £18.4bn of lending in 2018 (£9.0bn) and 2019 (£9.4bn).
Catherine Lewis La Torre, chief executive officer of the British Business Bank, explains:
“In a relatively short period of time, private debt has established a position as a viable type of funding for the UK’s smaller businesses at different stages of development. As the focus shifts from stabilisation to economic recovery, supporting business growth will be a fundamental driver of a thriving post-Covid-19 UK economy. Ensuring that businesses can access the funding best suited to their needs will be vitally important in the coming years and private debt has an important role to play.”
This article briefly examines why private debt is of use to small and medium-sized enterprises (SMEs), using information contained in the report.
Want to explore finance options for your business?
You can with our quick, easy, 6-step tool. Fill in all six questions and we'll generate a list of finance options that could be suitable for you.Find finance options
Enter your postcode to find business support and case studies from businesses within your region. You'll be taken to our interactive map.