U.K. alternative lender Sorodo says small businesses (SMBs) in the nation remain unaware of the option to access a merchant cash advance, and that’s something the company plans to address this year, according to a press release the company issued Monday (Jan. 15).
In its announcement, Sorodo said it will be expanding its small business lending platform that first launched in 2014 to address the gap in small business funding left in the wake of the global financial crisis. The company initially focused on merchant cash advances, but, according to the firm, awareness of the tool — and other types of alternative loan formats — remains low in the SMB community.
“We still have some way to go, as the product is still fairly unknown to the wider business community,” said Rich Wilcock, one of Sorodo’s co-founders. “We are entering 2018, and still, awareness is disappointingly low, which is why we have extended our alternative finance platform to offer our customers a wider financial solution based on their circumstances and business needs.”
The expansion means Sorodo will be able to reach more SMBs — not just merchants that operate with point-of-sale (POS) terminals, the company said — by connecting borrowers on its platform to external lenders.
“The term ‘alternative business finance’ covers a variety of new funding models that allow businesses to access funds that are not readily offered by traditional lenders,” Wilcock continued. “The new platform allows business owners to access a wide range of alternative business finance providers and products by completing one inquiry form. This will determine which lender offers a suitable funding product based on the information provided by the business owner. The results are presented directly to the applicant.”
He added that Sorodo will link SMBs to financing in several forms, including “asset-based lending, invoice finance, venture capital, pension-led funding” and more.
The platform includes local and regional funders, the company noted.
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