SMEs bank on alternative finance
A new study has reported that British small business owners are growing concerned that the country’s uncertain landscape could lead them to struggle to secure funding in the coming year.
This new survey was commissioned by payment processing company Worldpay, and out of 1,000 small business owners, only half say they are planning for growth in 2018. Many small business owners are concerned that traditional routes to finance, including bank loans, may not be available at the same levels in the coming year.
Business leaders are not admitting defeat however, and some are even looking into alternative finance options. Such examples include; the online-based P2B or peer-to-peer lending, crowdfunding and business cash advances.
Worldpay found that a rising number of start-up businesses are using these alternative finance options. Their research found that while 20% of business owners would still apply for a bank loan to secure funding, a close 17% said they would rather a more collaborative crowdfunding service.
James Frost, CMO Worldpay UK reported that many business leaders are thinking back to the credit crunch of 2008 and are planning ahead accordingly. “We’ve come a long way since then” Frost added, “and today small business owners have an incredible number of options available to them in order to support growth”.
Not all businesses are so open to alternative finance however, and some are reluctant to embrace these new and digitised options. Frost claimed that older and more traditional business owners were more likely to remain loyal to bank lenders, leaving them more vulnerable in the case of any economic downfall.
Worldpay’s study, while accurate, does not cover all options available for struggling businesses. Credit management companies such as here at Credit Protection Association help members free up cash flow through a quick analysis of their finances. By collecting any outstanding debts on their behalf, advising them on late payments, or smoothing a bad relationship with a customer, we can enhance their business and result in them not needing additional funds after all.
Keep up to date with the latest news by following us on social media:-
Watch the video to find out how CPA can help you
Read Our Blog – How to overcome common excuses for non-payment
Read our blog – Debt collection agency
Read our Cash Flow Advice
Read about our overdue account recovery service
Read our blog – What is credit management?
Read our blog -What is a credit management company?
Read our blog -Credit Management that works!
Read our blog – How to select a debt collection agency
click to see read about our successes
Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.