Majority of SMEs are confident in raising cash
21 July 2014
According to the latest survey from Platform Black and IFF Research, 71% of small to medium businesses are positive they can access the funding they need over the next year. 500 managers and directors were surveyed across the UK, with those in the manufacturing and construction sectors showing most confidence. For a while, the perception has been that acquiring finance is difficult for SMEs. However, these latest figures reveal a welcoming shift in attitude as more small businesses feel confident in getting the funds they need. Alternative finance, like crowdfunding, peer-to-peer lending and invoice finance, is becoming more popular among SMEs, simply because there is more flexibility and choice. Small businesses are starting to feel confident in approaching non-traditional lenders. The survey also showed only very small ‘micro’ businesses feel less confident (at 69%) in applying for finance. With one to nine employees, a micro business may have difficulty due to a lack of trading records. Overall, this new-found confidence is great news for small businesses and the wider economy. The government is also working on plans to help <a href="https://www.gov.uk/government/consultations/sme-finance-help-to-match-smes-rejected-for-finance-with-alternative-lenders/sme-finance-help-to-match-smes-rejected-for-finance-with-alternative-lenders">SMEs that have been rejected for finance by connecting them with alternative lenders</a>. Another step in the right direction!