The launch of a new SME support fund by West Sussex County Council (WSCC) is indicative of the rise of non-bank finance services, such as invoice finance and peer-to-peer lending.

The WSCC £600,000 SME fund, part of the Be the Business programme, is designed to both provide start-up funding and help established businesses expand. The closing date for applications is 15 September.

The move by WSCC is yet another indication of the rise of non-bank finance in the UK. At the same time, the non-bank business funding site alternativebusinessfunding.co.uk continues to expand, with the addition of 40 community development finance institutions that were responsible for funding more than 10,000 small businesses turned down by banks in 2013. These developments follow news that the British Business Bank is embracing peer-to-peer lending and that Santander is offering non-bank finance through the Funding Circle.

Non-bank finance has becoming an increasingly mainstream service and is driving small business growth. According to a new survey by Albion Ventures, nearly two thirds of the SMEs it polled said that they expected to see moderate to dramatic growth in the next two years.

New figures from UK Trade and Investment, showing that companies in the country are attracting 14% more inward investment projects than last year, suggest that momentum is beginning to build. Services such as invoice finance, crowdfunding and peer-to-peer lending will have a key role to play in turning these green shoots into real, sustained growth.

To find out more about A&T Business Associates services, contact us on 01903 602211 or info@atbusinessassociates.co.uk.