SME finance is a massive market but poorly served, with only 25% of SMEs feeling supported by banks and 13% trusting their banks. The availability of data on SMEs is shifting from stale portfolio data to frequent, granular data from accounting systems and APIs. However, banks are not investing sufficiently in SME lending and overdraft borrowing by SMEs has dropped 40% in recent years. Growth Street proposes a new solution called Growthline that uses real-time data and insights to provide flexible, short-term overdraft-style borrowing to efficiently manage cash flow and drive business growth.

1. Redesigning SME finance
for the 21st century
James Sherwin-Smith
CEO, Growth Street
EXECFINTECH FRANKFURT – 8 MARCH 2016

2. A better way to finance
and grow your business
A better way to finance
and grow
A better way to financeA better way
Mission

3. 25%
75%
SME finance is a massive market, but poorly served
£140 BN lent to SMEs in the UK¹ alone, yet…
• Only 25% of SMEs consider that their
bank supports their business
• Only 13% of SMEs trust their bank to
act in their best interests
1. Funding for Lending extension statistics, Bank of England, September 2015
2. Banking services to small and medium sized enterprises, CMA & FCA, July 2014
• SME Banking: Net Detractor Score:
8%²
13%
87%

4. Paradigm shift in the availability of data
PAST PRESENT FUTURE
Banks
Stale, lacks detail,
portfolio approach
Growth Street
Fresh, granular data that
supports company specific models
• Current account tx data
• Statutory accounts
• Management accounts
• Cloud Accounting data
• Private API access to firm
performance info
• Public web sources
• e.g. Cashflow forecasts
• Transparent Assessment
• Feedback to the firm
• Better firm performance
• Better financial terms

5. Banks aren’t investing…

6. Retail and Corporate banks are
being split apart.

7. Tech investment is mostly to
keep the lights on.

8. Regulatory agenda is consuming
most resources.

9. Any discretionary spend is
focused on ‘bigger’ opportunities.

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Overdraft: what nearly every business wants, but can’t get
SME borrowing via overdrafts in the UK
(BoE, April 2011 to Nov 2015)
Down 40%
in 3 years

11. Efficient cash flow management drives growth
Business hoards cash
Huge opportunity cost
Limits growth potential
WITHOUT AN OVERDRAFT
£0



Flexible, short term borrowing
Business invests excess cash
(people, tech, etc.)
Business grows faster
WITH A GROWTHLINE FROM GROWTH STREET
£0




12. Other lending solutions don’t solve this universal problem:
Wrong products (slug of capital)
Wrong approach (point in time decision)
Wrong method (sell and forget)
Wrong model (prey on lethargy & ignorance)

13. Finance fit for the 21st century
GROWTH STREET SOLUTION

14. Bank independent, marketplace funded
GROWTH STREET SOLUTION

15. Simple to use and easy to understand
GROWTH STREET SOLUTION

16. Use data and insight to put customers first
GROWTH STREET SOLUTION

17. A better way to finance
and grow your business
James Sherwin-Smith, CEO
+44 7816 318310 / James@GrowthStreet.co.uk / @26left
Growth Street, London, UK
+44 808 123 1231 / Info@GrowthStreet.co.uk / @GrowthStreetUK