Recent research of nearly 1,500 SME decision makers across the UK, France and Germany shows that less than half (four out of 10) SMEs have been able to secure funding from their chosen lender.
Of these, 34 per cent felt that the capital available to them wasn’t enough to fund their investment plans, while a further 24 per cent said that the type of funding they had used was too expensive.
The report demonstrates clearly that the right funding is crucial for businesses looking to improve productivity and investment.
“Low productivity hinders economic growth and improving productivity is vital, particularly as the UK prepares to leave the EU. Given their importance to the economy, SMEs will be central to potential productivity gains,” the report says.
“SMEs need access to the right finance and support to invest in training staff or adopting new technologies so increasing awareness of financial options is crucial.
“Bespoke funding solutions which align to specific needs and growth plans are always preferable to a one-size-fits-all approach.”
Simon Belton at independent finance brokerage BM Structured Finance comments: “The banking world has changed and SMEs must explore alternative ways to generate working capital.
“The key for all businesses seeking funding however is in choosing an adviser who understands the finance market and which banks/lenders offer what products. At usually no cost to them, businesses can work with an independent adviser who will tap into the wide-reaching network of financial providers, both in the equity and debt markets, and find the right funding solutions appropriate to their individual needs. They will also check the small print to help to avoid any tricky issues further down the line!”
Our partner business BM Structured Finance specialises in sourcing and restructuring debt finance for SME businesses, enhancing cash flow liquidity and enabling maximum growth. We understand that choosing a finance partner is not a one size fits all exercise. We match the most suitable products to each individual circumstance and we work together to ensure compatibility and satisfaction, adding value to your business or client relationship.