Alternative Finance - The road to success for UK SMEs

A revolution in financing business growth has taken place over the last few years yet only 37% of SMEs in 2015 were taking advantage of external finance.

The choice in funding for businesses is vast, the explosion of finance options now available means that British businesses have never had so much choice in how and when they can finance their growth aspirations.

According to the BDRC SME Finance Monitor (Q4 2015) the number of business stating they would fund their own growth was a staggering 80%. It seems many business owners are still sceptical of applying for finance through their banks in fear of being declined. However results from the SME Finance Monitor report that 73% of loan applications are now being accepted, but it seems business owners are unaware of the alternative funding options which may suit them and their business needs better.

So what can alternative finance offer? In short, freedom and choice. Many businesses are either seeking short term fixes to cash flow challenges or longer term investment to fuel ambitious growth. That’s where alternative finance can step in and provide greater flexibility and match the needs of the business.

Taking the time to conduct some research about the options available will showcase the type of finance out there , alternatively speak to a broker or intermediary who specialises in business finance. Pivotal to all of this is the speed and ease of access to funding and working with a provider who knows and understands your business. A good provider should explain how the product works, how much it will cost, the terms of the finance and give total transparency into the service they offer. Whilst there are many alternative providers are online, many business owners are not comfortable with what could be seen as an anonymous transaction – if that’s the case, seek out providers who offer visits to your premises, who want to meet and understand your business and ensure you are comfortable with the whole process.

Long gone are the days of completing lengthy application forms and waiting weeks for an approval; there are a number of alternative funders out there and the process needn’t be scary. As an alternative funder Catalyst Finance allows businesses to release the cash tied up in unpaid invoices. It can be used for short term and longer term cash flow situations and our team will make take you through the process step by step and help you to get the cash acceleration you need.


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