SMEs more confident in bank lending

Confidence in bank lending grows, but alternative finance remains a good funding option for SMEs looking for the right financial products for their specific business needs.

Over half (52 per cent) of business owners and small businesses have confidence in the availability of bank lending, but just 10 per cent are yet to be convinced about the merits of borrowing more, according to the Owner Managed Business Barometer published this week by the Bank of Cyprus.

The report shows that 74 per cent of the businesses surveyed said are satisfied that their current borrowing commitments are sufficient to meet their cashflow and business investment needs over the next year. This is however in contrast to recent figures from the Bank of England which showed that lending to small businesses rose in September at its fastest annual pace since 2012, suggesting that companies’ are still actively seeking additional funding.

SMEs should do their research when considering their lending options, and alternative methods to source working capital finance to fund start up and growth is becoming increasingly popular, rather than borrowing directly from the bank.

Cashflow forecasting and budgeting models are becoming increasingly important, not only to help you plan your finances, but they are also commonly requested by banks and other providers of finance.

At Beavis Morgan, our specialists to SMEs are available to provide long and short term forecasts, budgets, business plans, sensitivity analyses, and calculating and checking compliance with covenants.

Our partner business, BM Structured Finance, is also available to help with 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.

For further information, contact Steve Govey or your usual Beavis Morgan Partner