With banks still wary to invest in small and medium sized businesses (SMEs), the lack of funding presents opportunities for investors willing to lend money. According to recent reports, a growing number of investment firms are recommending that their affluent clients consider investing in SMEs while corporate bond yields and interest rates remain low.
As a further incentive to investors, a study by Amazon and Capital Economics has shown that SME growth is expected to accelerate next year, with sales increasing to 1.5 per cent (1.2 per cent in the past year). Export revenue growth is also forecast to double (0.4 per cent this year to 0.8 per cent next year), while employment growth is predicted to rise 0.7 per cent in the next 12 months.
With access to additional funding from investors looking for good returns, small companies can potentially grow to become medium sized companies, and these businesses can in turn develop towards becoming the global wealth creators of the future, thereby boosting innovation, industry and the UK economy.
If you are looking to invest in an SME business, our experts at Beavis Morgan are able to identify and review potential business targets on your behalf, as well as undertake due diligence, deal structuring, and advise on efficient tax planning.
We are also able to provide a comprehensive range of professional services to help you make the most of your investment, as well as to assist the SME business which may require better budgetary controls, forecasting and management accounts as a result of any boost in growth.