Research from Together found that almost a half of those surveyed believed that credit rating would make the biggest difference in a loan being accepted, whilst over a third thought that computers decide who gets offered a loan, not people.
The specialist finance provider has its research highlighted the widespread lack of awareness of the alternatives to the traditional banks such as specialist lenders, crowdfunding and peer-to-peer lenders that offer very different approaches to the more traditional forms of funding.
Gary Bailey (pictured), sales director at Together, said: “We work with customers across the UK through our extensive network of brokers, and our decisions are based on the individual circumstances, rather than a rigid criteria and computerised credit score. At Together, we call it common sense lending and essentially it’s this that sets us apart from the mainstream.
“The alternative finance industry has seen huge growth in recent years, as it aims to meet the needs of individuals that may, for a wide variety of reasons, look to access finance outside of the traditional high street route, but as the research has shown, many are simply unaware of the alternative options available to them.
“It’s important that brokers start to educate consumers about what we mean by alternative finance so that these perceptions start to change.”
In addition, the survey found that 46% believe it’s more difficult to obtain finance for property than in the past, yet the growth in the alternative finance sector proves that there’s more choice than ever before when it comes to finding the right funding.
