6 ISSUES FOR JUST £6 Subscribe to Business & Professional Life today CLICK HERE

Folk2Folk: Romancing the disaffected, hand-in-hand with the big boys

PUBLISHED: 16:00 05 July 2017

Giles Cross, Folk2Folk

Giles Cross, Folk2Folk

Archant

The UK is now in possession of a vibrant, innovative and diverse Alternative Finance sector, with available solutions including Peer-to-Peer lending for debt finance, invoice trading, working capital loans and crowdfunding. And the reason for this?

No one can pinpoint exactly when, but sometime, somehow and somewhere between those heady, optimistic Brit-Pop, Cool Britannia days of the late 1990s and the financial crash of the late Noughties, traditional business banking “disappeared”, and with it went a legion of established and expected relationships, creating instead a generation of disaffected consumers, a new breed of finance providers and a fresh wave of financial activity.

No one’s to blame. It’s just what happened. Things change. It’s the way of things.

And now, looking at the AltFi UK Volume Index at the half year point, we believe that the amount of funding from marketplace business lenders projected to make its way to UK businesses by the end of 2017 could easily be exceeded as awareness of and demand for the Peer-to-Peer sector continues to grow. We see more and more businesses who are actively seeking out and preferring alternatives to traditional sources of finance, increasingly finding themselves the victims of inflexible customer “templating” and reduced corporate and shareholder appetites for lending risk.

The allure of this energetic and growing sector is easy to understand. Businesses want certainty, speed and simplicity when looking for finance and the promise of quick and transparent decision making processes with answers delivered in days and funds deposited within weeks is very attractive.

But this challenge to the historic dominance of the banks has not just created an environment of healthy competition; it’s created an opportunity for interaction and cooperation that can only be positive for British business, a chance to work together for the benefit of all.

Established SMEs will tend to approach their bank first when seeking finance; something natural and to be expected where long held and workable relationships exist, and often with success. But rural and smaller, entrepreneurial businesses are finding themselves increasingly unattractive to those institutions as the willingness to lend to certain sectors has fallen away, thereby creating an inflexion point where Alternative Finance providers can step in and collaborate with banks for the good of the customer, winning confidence and justifiable affection for both parties.

The opportunity for all involved professional parties - banks, lawyers, accountants et al – to work together to help find viable finance and lending solutions for their business customers can only be a good thing, effectively collaborating to deliver faster, better and happier funding experiences.

Customer disaffection is everywhere. It happened and we’ve got to live with it.

But by working together, traditional and Alternative Finance providers can romance “The Disaffected” back to a “happy place” where they can see and feel that their advisers genuinely have their best interests at heart, wanting to see them succeed, grow and prosper.

Folk2Folk is a Peer-to-Peer lender focused on helping to create and maintain financially and socially successful local communities. We exist to enable a “people powered” free flow of capital from local investors, attracted by the promise of 6.5% interest (a positive incentive for those suffering and requiring greater income in a frustratingly low interest economy – but that’s another article!), to support and finance local, rural and entrepreneurial businesses, generating growth and job opportunities, creating a sustainable form of trickle-down of micro-economics that works to the benefit of all.

Together, working positively and proactively with the traditional banking sector, we can win back the hearts and minds of business owners disenfranchised by circumstance and change, romancing small, rural and local business back into a winning mindset, saying “yes” to new and exciting ventures, helping businesses “crack on” and grow, benefiting both themselves and others.

Together, hand in hand, we can keep Britain booming.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Cotswold Life visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Cotswold Life staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Cotswold Life account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More from Cotswold Life

Yesterday, 14:10

It’s the season of terrible puns, magic lamps, and generous genies: Aladdin, the all-new panto at the Everyman, has been written by none other than legendary Blue Peter presenter Peter Duncan, and stars everyone’s favourite clown, Tweedy. The Barnard family from Nailsworth - mum, dad, Harriet (12) and Lewis (6) - made a Wishee (Washee) for tickets; grabbed their car (Window Twan) keys; and dashed off to see A Ladd In Cheltenham

Read more
Yesterday, 13:45

Crispy, frosty days and perhaps even a dusting of snow, winter is a magical time in the Cotswolds. If you’re thinking of tying the knot during this beautiful season in the region, here are six winter wedding ideas to help you start planning your special day

Read more

Christmas in the Wilson household is a heartwarming, traditional family affair

Read more
Yesterday, 13:15

Tracy Spiers takes an impressive, if hypothetical, budget on a shopping spree in Cheltenham’s independent stores

Read more
Yesterday, 13:09

Veganism is the latest food trend to hit the Cotswolds but it’s something we can all enjoy a bite of

Read more
Yesterday, 12:23

Get out and enjoy seasonal celebrations with a Cotswold twist

Read more
Yesterday, 12:21

The weekend is fast approaching and for those still deciding how to spend their Friday through to Sunday, we pick 5 of the best ways to spend your weekend in the Cotswolds

Read more
Yesterday, 12:01

This year sees the 40th anniversary of the publication of Raymond Briggs’ original picture book The Snowman. With three performances of the animated film – with live orchestra – coming to Gloucester Cathedral next month, we thought we’d catch up with Rachel Whibley, managing director of Carrot Productions (and occasional snowman), to find out more...

Read more
Yesterday, 09:13

Alleviate the stress of hectic Christmas preparation and endless shopping trips with a festive afternoon tea in one of these gorgeous Cotswold settings

Read more
Friday, December 7, 2018

Find a fabulous gift for everyone with Whatley Manor’s monetary vouchers.

Read more
Thursday, December 6, 2018

One lucky reader could win a pair of tickets to see Ella Mills, founder of Deliciously Ella, at Calcot Manor as well as two signed copies of ‘The Plant-Based Cookbook’

Read more
Thursday, December 6, 2018

People travel from far and wide to visit the Cotswolds at Christmas. We’ve compiled 24 reasons why you should join them.

Read more
Tuesday, December 4, 2018

If you’re looking for things to do in the Cotswolds this month, we have gathered plenty of events for you to pop in your diary

Read more
Tuesday, December 4, 2018

Hundreds of participating National Lottery-funded visitor attractions across the UK are saying ‘thanks’ to people who have raised money for good causes by buying a lottery ticket, including a number of venues in the Cotswolds

Read more

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

Topics of Interest

Food and Drink Directory A+ Education

Subscribe or buy a mag today

subscription ad

Local Business Directory

Property Search