In today’s post-recession economy, small and medium-sized UK businesses are constantly on the lookout for more appropriate and flexible forms of funding. And whilst traditional providers remain popular, SMEs and business owners are becoming more aware of the benefits of alternative funding.
According to research carried out by independent invoice finance provider, Bibby Financial Services, up to 20 per cent of SMEs in the UK say their current source of finance is inflexible, with one in three considering a change in the future.
These results come from a survey of 1,000 small and medium-sized enterprises in the UK, and suggest some unrest when it comes to the more traditional methods of funding. But how can funding arrangements be improved?
According to Bibby Financial Services’ recent research, UK SMEs indicate that a lack of flexibility and poor customer service are among the most frequent reasons for sub-standard funding arrangements. And it’s because of this that one third of UK SMEs are considering a change of business funding provider in 2014, seeking finance providers with 24-hour online access, lower rates and more flexible terms.
Switching Finance Provider
Whilst more and more modern-day SMEs are considering different forms of finance, many still don’t have access to the full story, and consider switching finance provider an unwanted risk. But with more flexible and approachable funding now available, the rest of the finance sector needs to act, and provide more tailored services for business owners.
For more information about flexible funding and Bibby Financial Services’ cashflow solutions, visit: www.bibbyfinancialservices.com or call 0800 91 95 92.
About the Author
Having worked in financial services for over 36 years, Andrew Darling is a specialist in invoice discounting, factoring and trade finance solutions. He currently manages the development of business with higher turnover companies at Bibby Financial Services, specialising in corporate finance for businesses with turnover of £5 million or more.