A new FinTech platform from FSB launching today (10 January) aims to help further the success of the UK’s small business and self-employed communities amid the findings of latest research that confidence within the sector has fallen. Federation of Small Businesses (FSB) Small Business Index Q4 published last week shows only the second negative reading recorded in the last five years.
- £40,000 is the average amount a UK small business wants to borrow from alternative finance
- 40% of small businesses seek alternative finance for equipment purchase (40%) and 40% for working capital (including for short-term operations and late payments)
Access to finance is crucial to the small business sector which accounts for an annual turnover of £1.9 trillion a year – 51 per cent of all private sector turnover in the UK.
The FSB Funding Platform, developed by Finpoint, uses intelligent matching technology to match applicants with finance providers. A pilot of the platform for FSB members in three UK regions shows that the average amount of finance a small business applies for from an alternative finance provider is £39,000 – half the amount sought from banks – ‘traditional finance’.
FSB’s Commercial and Operations Director Dave Stallon said:
“We’re so pleased to be able to offer this exciting platform to our member base. Although it’s harnessing the latest innovations in tech it offers a very simple way to access finance, as well as access to human financial advisors. It will transform the business funding market and is a real step change for small businesses.”
The contract for the FSB Funding Platform was awarded to Finpoint. The company was founded in 2014 by CEO Rainer Plentl.
Finpoint Managing Director Guy Bridge explained:
“We haven’t seen enough transparency in the market, and we remain motivated by how we can use technology to provide an efficient service, but perhaps most importantly, we were keen on providing high quality customer service, which means any one of us may be on the phone when you call us up with a question about your funding needs. We quite like the label “FinTech”, because it is a mixture of Technology and Financial Services, with a heavy emphasis on “service.
“We’re thrilled to have been awarded the contract to provide FSB’s funding platform. As a small business ourselves – and a member of FSB – we get what’s needed, how small business would like to use the platform and we’re truly excited.”
FSB Funding Platform, powered by Finpoint, is regulated by the FCA and offers free access to over 100 lenders with AI technology matching entrepreneurs and businesses wanting funding with the best lenders for their circumstances. The platform also provides access to finance advisors.
Finpoint Limited is a credit broker sourcing from the whole of market, not a lender. Authorised and regulated by the Financial Conduct Authority (FCA) under reference number (FRN) 727163.
FSB is member-led and not-for-profit. Its focus is on successfully lobbying Government to make important policy decisions, whilst offering effective tools, advice and benefits that have a positive impact on the day-to-day business lives of small business owners and the self-employed. For further information, visit FSB.org.uk