Recent research conducted by Responsible Finance reveals a rapid growth in alternative lenders in 2015. The research reveals that this has been a record year for the responsible lending market, with a 45% rise in lending to small businesses, social enterprises and local communities. The findings show that for ever £1 lent by responsible lenders, £7 of value is added to the economy. The research also highlights that over 45,000 people used ethical loans as an alternative to high interest payday loans.
Responsible Finance predicts that its members will lend a further £1.9 billion by 2020, supporting 75,000 more businesses and helping 360,000 more people avoid high interest lenders.
Ben Hughes, Chief Executive of Responsible Finance said: “We know that too many people can’t access affordable and fair finance, denying them economic and social opportunities. Responsible lenders are combating this by investing in record numbers of people, places and businesses. In the last year they have delivered over £250 million in loans across Britain’s towns and cities, which is creating opportunities, boosting enterprise and fuelling growth.
“It is absolutely vital that the government continues to support this new and developing industry so that its many social and economic benefits continue.”