Fleximize has announced it has secured £5.5 million in funds from investors to provide to SMEs.
The alternative finance provider has never been scared about voicing its opinion about the current lending to SMEs and this raised finance will only boost confidence at the platform.
Last year the Fleximize responded negatively to the Autumn Statement by insisting that the money to the Government expend to lend in 2015 still isn’t enough.
The Treasury confirmed in December that it will guarantee up to £500 million of new bank lending as well as pledging £400 million to extend venture capital funds which invest in SMEs, called Enterprise Capital Funds.
Max Chmyshuk, Founder and Managing Partner at Fleximize, said:
"Many SMEs are still struggling to secure funding from mainstream banks. Our own analysis reveals that between July and September 2014, banks rejected credit applications from SMEs worth an estimated £1.44 billion. We believe this is around 28% higher than the value of SME credit rejected in Q2 2014. Over one in five applications from small businesses for overdrafts and loans are rejected by the banks, and the corresponding figure for medium-sized enterprises is around 12%.
"This unwillingness to lend is fuelling increased demand for alternative lenders. The value of SME credit applications we received in Q4 last yea year was more than double the value of Q3 applications.
"The recent Government announcement that banks will be forced to forward on the details of SMEs they reject for funding to alternative lenders will 'open up the floodgates' to new forms of lending for businesses. Our research shows that 65% of SMEs support this move."
Fleximize has also announced that it has now lent £4 million since its launch in 2014 and of the businesses it has leant to around 15% have previously been rejected by banks.
The platform offers a choice of flexible loans and revenue-based financing to small and medium sized businesses where repayments are tied to a client's revenue flow – paying back more in good months and less when income drops.