Rob Straathof is CEO at Liberis, an award-winning alternative finance provider, offering a better way to fund UK small businesses
With 2018 firmly behind us, the early months of the new year are a time for contemplation and evaluation of the last 365 days; both the good and the bad, the opportunities and the challenges.
Although there were numerous business success stories in 2018, the life of a business is never plain sailing and there will forever be bumps along the way. But it is rising to these challenges that so often makes us stronger!
From our experience, one of the most common hurdles in building and growing a business is ensuring the correct amount of finance is accessed to support said growth. Our recent research has shown that nearly 30% of UK SMEs require funding simply to stay afloat, yet a large majority find accessing this finance a major challenge. One reason being is there is a reluctance among UK banks to invest in risk and innovation, indicating a demand for alternative financing options.
As we move into 2019 – with access to finance on the minds of countless small UK businesses – we wanted to provide some insight for business owners on the top five financial trends of the new year and how these could impact the funding challenges they face.
1. Fintechs’ Importance in Supporting SME Loan Options
accounting software, financial management, insurance and business evaluation services. It’s worth exploring these platforms and considering how they could offer a new dimension to your funding options.
2. Rise in Open Banking
Saving time, hassle and risk for small businesses
3.Disruptive Financing Options vs Banks
Accessing finance via traditional banks versus more disruptive financing means will forever be an ongoing debate. Today, there remains an understood resistance from banks to lend to UK small businesses, prompting concern on the wider impact on UK small business survival rates, with the total amount of bank overdrafts and loans outstanding to small businesses decreasing by nearly £6 billion in the past five years. Make sure to research as many options as possible to decide which best fits your needs.
4.Alternative Finance Increasing in Demand
The small business funding gap is most certainly an area that needs to be rectified; as limiting access to finance
5. Growing Need for Flexi-Finance
It’s always worth mapping out exactly how much finance is required and when. This is sometimes tough to estimate but having the option to dial up and dial down the amount of lending required can be beneficial. Finding
Kickstarting growth can be a challenge for any business and requires a huge amount of self-discipline, drive and, most importantly, a consistent enthusiasm.