By Daniel Hunter

British banks rejected an estimated £1.44bn worth of loan applications from small and medium-sized enterprises (SMEs) between July and September 2014, new figures show.

Alternative finance provider Fleximize said the £1.44bn value was 28% higher than the loans rejected in the previous quarter. Banks rejected a estimated £1.123bn worth of loans for SMEs.

Fleximize said that one in five applications from small businesses were rejected, but just 12% of those from medium-sized businesses suffered the same fate.

The growing problem of gaining finance from traditional lenders is resulting in more and more businesses turning to alternative lenders, Fleximize said. It said applications during the fourth quarter of 2014 doubled from the previous quarter.

Crowdcube, another alternative finance platform, helped entrepreneurs raise more than £35m in equity funding in 2014, 246% more than in 2013.

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