A growing community of online investors with competitive interest rates is filling a funding gap for SMEs at a time when access to bank loans is drying up.
Social networks of investors are lending millions of euros' worth in loans to entrepreneurs and small businesses in a growing trend of peer-to-peer funding for companies online.
Funding for SMEs has begun to dry up as banks attempt to deal with the euro crisis and the pressure from both governments and markets to strengthen their balance sheets.
"The issue of financing is a pressing issue and it is not going to get better," Daniel Calleja-Crespo, the Deputy Director General for Industry and Entrepreneurship from the European Commission said at an event on SME financing yesterday (6 October).
To read the full, original article click on this link: Online business angels fly to SMEs rescue | EurActiv
