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.&nbsp; 500 managers and directors were surveyed across the UK, with those in the manufacturing and construction sectors showing most confidence.&nbsp; 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.&nbsp; 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.&nbsp; The survey also showed only very small &lsquo;micro&rsquo; 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.&nbsp; 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!