Since the Bank of England dropped interest rates to the historical low of 0.25%, there has been a rise in the number of investors turning to alternative finance as they seek better returns on their investments.
New research from IW Capital, which surveyed 2,000 consumers and citizens in the UK, reveals that almost one third (30%) of respondents are looking to invest by way of Enterprise Investment Schemes (EISs) over the next 12 months.
IW Capital CEO Luke Davis comments:
“The findings are encouraging, demonstrating the health of the initiative and confidence in SME progression at a time of transition for the UK – this is supported by research carried out by IW Capital earlier this year which found that 57% of UK investors feel confident in SMEs as being drivers of private sector growth and productivity.
“Moreover, among the 18-34 year olds surveyed, the percentage of people looking to invest through EIS in the next 12 months rises to 38% – boding well for the future of the scheme, with the next generation of UK private investors keen to back British small businesses via EIS.”
Regionally, the research found that investors in London were the most likely to use EIS over the coming year, with 45% expressing an appetite for the program. The South East and North East were the next keenest areas, with 30% of respondents from both confirming interest.
Davis added: “Following closely after Britain’s vote to leave the European Union, the Bank of England’s decision to cut interest rates to record lows has had an inevitable ripple-effect, impacting people in every corner of the UK.
“This period of political and economic change makes it extremely important for savers and investors alike to evaluate the effectiveness of their financial strategy for the months and years ahead.”
Tags: alternative business finance, alternative business lending, alternative development lending, alternative finance, alternative funding, alternative lenders, alternative lending, altfi, Bank of England, EISs, Enterprise Investment Schemes, SME, SME lending, SMEs