I was shocked by a recent report I read that stated, 19% of UK small and medium-sized enterprises have missed at least one new business opportunity in the past 12 months due to a lack of available finance.
The study from Aldermore revealed that a lack of finance costs SMEs an average of £112,508 in lost chances each year. That’s a crazy amount to be losing! It’s frustrating to see that so many businesses are missing out on valuable opportunities due to lack of appropriate funding, especially with more than two fifths of SMEs saying that their key business priority for 2017 is achieving business growth – which most of them will need funding to achieve.
When asked what proportion of their business is financed by different forms of funding, the research revealed that traditional bank lending, including overdrafts and credit cards, finances almost a fifth (18%) of SMEs’ business. However, alternative finance, including asset finance, invoice finance and crowdfunding, only provides 14% of finance accessed by SMEs.
Listen, money is obtainable, but in this uncertain economic environment SMEs just need to be looking at alternative lending options from people like me, rather than thinking that old-fashioned routes such as funding from banks is the best and only way to obtain money for their business.
As a lender focused on supporting SMEs of all shapes and sizes I want to give SMEs every chance to succeed, so it is vital that the finance industry gives them every chance to succeed.
In my experience SMEs thrive in the toughest condition, mainly due to their ambitious mindsets, but having the right funding can take them from a small business to a globally successful business in just a few years.