Blog

Potential £22 billion funding gap by 2017

11/02/2014 / Comments 0

Potential £22 billion funding gap by 2017

The steady improvement in the economy has spurred many businesses on to expand and given them the confidence they need to take advantage of the positive market.

Perhaps you need new equipment, a few extra employees, or an exciting contract that could take your business to the next level, all you need are the funds to finalise it. Yet the injection of cash needed is much harder to come by than one would think. Unfortunately this is a scenario that many small and medium businesses have been faced with across the UK in the past five years.

A rather worrying statistic released by the National Audit Office recently revealed that by 2017 there will be a potential £22 billion funding gap between the amount of finance available to SMEs and the amount they need.

Sam Holliday, the development manager for the Federation of Small Businesses for the West of England, said: “Access to finance remains the number one concern for many of our members and our most recent survey on the issue revealed that 40% of SMEs who had approached the banks for investment had been turned down.

“In addition some who had been offered support had to refuse it because the high interest rates offered were simply unaffordable.”

Evidently it is now increasingly important to find out what type of funding is right for your business at a specific time. In light of this many companies are now seeking alternative sources of finance, a notion that was supported in a survey by the National Association of Commercial Finance Brokers, which highlighted that asset based lending to businesses rose by 10% and the arrangement of credit by commercial brokers increased by 17%.

In a period where there are a range of Government schemes released yet few that seem to offer a viable solution, it is at least encouraging that asset based finance is bucking the trend to offer SMEs a way forward to grow their business in 2014.

Please share your thoughts in our comment section below or tweet us @HiltonBaird.

Comments

No comments yet - be the first!

Funders we work with

  • PNC Business Credit
  • Hitachi Capital Invoice Finance
  • Close Brothers Invoice Finance
  • Positive Cashflow Finance
  • ABN AMRO Commercial Finance
  • Outsauce
  • Davenham Trade Finance
  • Innovation Finance
  • Davenham Asset Finance
  • Henry Howard Cashflow Finance
  • Platform Black
  • Ultimate Finance Group
  • Bibby Financial Services
  • Assetz Capital
  • Leumi ABL
  • Woodsford Tradebridge
  • Working Capital Partners
  • Barclays
  • Regency Factors
  • Calverton Finance
  • Partnership Invoice Finance
  • Metro Bank SME Finance
  • Lloyds Bank Commercial Finance
  • IGF Invoice Finance
  • GapCap Cashflow Finance
  • 1pm
  • iwoca
  • Amicus Commercial Finance
  • Skipton Business Finance
  • Everline
  • Market Invoice
  • Roma Finance
  • Trade Finance Partners
  • Catalyst Finance
  • Asset Advantage
  • Team Factors
  • Royal Bank of Scotland
  • Creative Capital
  • Aldermore Invoice Finance
  • Pulse Cashflow Finance
  • Secure Trust Bank
  • Nucleus Commercial Finance
  • Ashley Commercial Finance
  • Factor 21
  • Shawbrook Business Credit
  • Invoice Cycle
  • Santander Corporate & Commercial

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders

Our website uses cookies. For more information about managing cookies, visit our Privacy and Cookie Policy. Continue