Political uncertainty worries 1 in 4 SMEs
The latest BVA BDRC SME Finance Monitor shows that a quarter of UK SMEs see political uncertainty as the main obstacle facing their business. In London the proportion jumps to 33%, with the North East (30%) and West Midlands (27%) also exceeding the average. Stephen Pegge, managing director of commercial finance at UK Finance, said: “This survey suggests many small businesses across the country are increasingly concerned about the ongoing uncertainty over Brexit.” He added that the banking and finance industry is ready to support viable businesses, noting that 80% of finance applications from SMEs in the UK are successful, “showing that firms should be confident in approaching their bank to discuss any financing needs.”
SMEs favour invoice finance over business loans for growth
A poll of 1,000 business owners by MarketInvoice has found that only one in 10 SMEs would use a traditional business loan to grow their firm. The research showed that invoice and asset based finance were the most popular funding routes, cited by 26% and 22% of firms respectively.
The survey of 1,000 business owners found that the typical UK SME is worth more than £2.9m and that company valuation is something that two-thirds consider to be a huge priority. Premises (17%), product (15%) and people (15%) were cited as key factors that contribute to company value. Meanwhile, a lack of finance was named as the biggest factor stopping firms growing and therefore increasing their company valuation, with just 30% of businesses increasing their value by more than 10% over the past 12 months.
Trade Ledger launches cloud technology for invoice finance providers
UK-based open banking business lending platform Trade Ledger has launched an Automated Invoice Finance Platform for banks and alternative finance providers.
The solution is designed to help financial institutions adopt state-of-the-art technology without having to make major infrastructure changes or commit significant IT investment.
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