StartUps are Growing Fast- Credit Managers Must Keep Up

22nd February 2018.

The 500 most successful startups created in the UK over the past six years have grown at an annual rate of 30 percent a year, according to new research.

While some startups still struggle to gain funding as higher interest rates make borrowing more expensive; large numbers are finding the space -and the capacity- to grow. In fact, a record amount of money, at £8.27 billion, was invested in UK startup businesses last year, according to new data. It is fintech firms that have the largest headstart, with new technology simplifying the complexities of the financial sector.

Here at the Credit Protection Association we have invested in new financial technology and have seen it transform our business for the better. We, in turn, encourage our members to embrace innovation, as not doing so will not only threaten their company’s competitive edge, but also London’s place in our economic future.

Startups from other sectors have had a slower road to success, with ‘edtech’ companies only growing by 6 percent last year. Unlike fintech, where the utilisation of technology have made clear advances in security and productivity, some more traditional educational institutions have disputed the educational merits of introducing technology into the classroom.

Startups are clear signifiers for how the future of the UK will look. They invest in risky, breakthrough technologies, embrace emerging talent, and fund projects through independent sources. Stronger, bigger and older businesses may be on more solid standing, but competition with rival economies demand risk. The growth that British startups are spanning further boosts London’s place in the digital race. If we are to remain frontrunners, we must encourage more funding for startups as well as more technological advancements within older companies.

Here at the Credit Protection Association, we have helped many members free up cash flow. This has allowed many business owners to put funding back into the innovation of their business, whether they are scrappy startups or big corporate businesses.