- 06 Sep
'Alternative Finance' - Positive Handle Or Ball And Chain?
This article was published about the use of the term "alternative finance" and the pros and cons of using it to label products such as crowd funding, peer to peer lending and invoice finance: 'Alternative Finance' - positive handle or ball and chain?.
This was my comment:
"I think its difficult to choose! On the one hand the tag "alternative finance" clearly identifies the sector as something apart from mainstream banking. Recently there has been a degree of negativity around the availability of bank lending (as seen in our research) and hence the tag probably helps establish these products as an alternative option. However, it doesn't help these "alternative" products take up their rightful position, as the first choice for some businesses (not for all but some). Nearly everyone that buys a car thinks - "I need car finance" but very few businesses that raise credit invoices think "I need invoice finance"!"