A poll by the British Business Bank, the UK government-owned economic development bank, reveals that a third of British small business owners would like to expand, but do not know how to go about securing finance.
Often, SMEs want to grow but just don’t consider, or know of, the alternative finance options available to them. For example, just 5 per cent have considered bringing in a business angel and 7 per cent have thought about crowdfunding.
Older business owners are significantly less likely to be aware of or to have used alternative growth finance options than their younger counterparts. 19 per cent of millennials (under-35s) have considered crowdfunding, compared to a mere 3 per cent of over-35s.
However, business confidence is high amongst those surveyed, with more than half (51 per cent) of business owners saying they expect to increase their income/turnover in the next financial year, with fewer than one in ten (8 per cent) expecting their income/turnover to decrease.
A separate survey for Hitachi’s financing arm found two-thirds of small businesses plan to expand in the next three years.
Piers Linney, Non-Executive Director at British Business Bank, says that businesses need to look beyond the high street to finance their growth: “Getting investment for your business does not have to be as scary as going into the Dragons’ Den. There are plenty of ways to get finance and access support – the challenge is knowing where to look, making the time to find out about them and getting investor ready.”
Keith Morgan, CEO of British Business Bank said: “The financial landscape can be complex and confusing for smaller businesses trying to finance their growth ambitions. Today’s polling shows that too often smaller businesses want to grow but don’t know where to start meaning they miss out on growth opportunities.”
With demand for alternative finance likely to increase as we move further into 2018, what is essential is that SME’s choose a specialist adviser who can recommend the right financial products for their specific business needs.
Our partner business, BM Structured Finance, specialises in sourcing and restructuring debt finance for SME businesses. We match the most suitable products to each individual circumstance and work together to ensure compatibility and satisfaction, thereby enhancing the business’ cash flow liquidity and facilitating maximum growth.
Whether you’re a start up or a well-established business, cash is king and managing its flow is crucial to your long-term success. For more information about how BM Structured Finance can help you and your business, contact Simon Belton or your usual Beavis Morgan Partner.
Further reading: Entrepreneurs win record finance deal