Alternative finance driving SME growth

UK SMEs are turning away from the traditional methods of lending and seeking alternative funding to sustain and drive growth.

Research shows that almost 60 per cent of SMEs are using external funding, such as invoice finance, rather than relying on overdrafts, savings and credit cards. This compares to just 30 per cent recorded in the same survey in 2016.

A quarter of SMEs (27 per cent) said they now “regularly” turn to external finance, a 20 per cent increase on three years ago.

Whilst 11 per cent are “concerned” about the potential impact of Brexit, the report reveals that 54 per cent are feeling “more confident” about their firm’s prospects in the next year or so.

“The UK’s economic outlook is often clouded by negativity, but this research highlights that SMEs are performing strongly and have built solid foundations to prosper, both pre and post Brexit,” a spokesperson says.

“Unless there is a material impact on their business today, there is no reason why SMEs should put on hold their investment plans to sustain and maximise growth.

“By leveraging external financial support from specialist lenders, SMEs can benefit from flexible funding solutions to spread the cost of purchasing new equipment and technologies to gain a faster return on investment.”

For more information about the range of finance options available to you and the best approach for your SME business in sourcing and restructuring debt finance, speak to Simon Belton at our partner business BM Structured Finance, or your usual Beavis Morgan Partner. We work with you to match the most suitable products suited to your individual circumstance and ensure compatibility and satisfaction, thereby enhancing the business’ cash flow liquidity and facilitating maximum growth.