30 per cent of SMEs need funding to stay afloat

New research shows that nearly 30 per cent of UK SMEs need funding to survive.

In this latest survey, prioritising the needs of small and medium sized businesses (SMEs) in order to keep their companies afloat, business owners were given a broad range of criteria to select from when indicating why they required finance.

‘Keeping afloat’ scored amongst the top five reasons, with ‘purchasing new equipment’, ‘keeping up to date’, and ‘other operating costs’ also scoring highly.

The research also found the most common amounts of finance requested was in the region of £30,000 and this was required to ‘take the business to the next-level’.

Banks remain resistant to lend to UK small businesses, which is a cause for concern across the small business community. Adding to this, the research also found there is a perceived reluctance among UK banks to invest in risk and innovation, indicating a significant need for alternative financing options.

The SME sector contributes more than £200 billion a year to the UK Economy, and according to the Centre for Economics and Business Research, this is set to grow to £240 billion by 2025. Yet, without a vital cash injection, this 2025 vision will be severely hampered.

With demand for alternative finance likely to increase, 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 are 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.