We’ve switched our classes to live online. For more Covid-19 updates, click here

SMEs vital for growth of UK economy, shows research

SMEs are vital for the growth of the UK economy, according to Alex Hazell of the SME-focused bank Aldermore. Hazell discussed the topic of SMEs seeking funding in a blog post, stating that they face a “plethora of challenges” when it comes to funding business growth.

Despite this, figures from the Federation of Small Businesses show that 99% of the estimated 5.4 businesses in the UK private sector are SMEs.

Invoice funding

According to Hazell, only certain types of funding are suitable for certain types of businesses. Whilst there may be lots of options for funding, the cost and service may not always be the most effective. Hazell discussed the option of invoice funding, stating that those who select this type of funding are “more likely to get direct access to decision makers.”

“This means decisions tend to be made more quickly and based on professional relationships, rather than simply just facts and figures. Time is often of the essence when securing funding, and the beauty of invoice financing is that it combines a commercial attitude with an uncomplicated underwriting process,” he said.

Flexibility

Hazell went on to discuss the benefits of invoice funding for SMEs, stating that it provides flexibility and is “less prescriptive” than traditional methods of funding. He added that it can be tailored, providing businesses with bespoke solutions to meet their requirements and enable them to achieve their goals.

“It also provides more scope for growth. Funding is provided against the debtor, so as the business expands and the need for funding increases, as opposed to reducing or remaining rigid, the funding actually increases in line with the debtor book,” he said. 


Other News

The Most Common Characteristics of a Successful Entrepreneur

“The most successful entrepreneurs tend to start with a desire to solve an interesting problem – one that’s often driven…

Fintech entrepreneurs contributing to rise in young millionaires, figures show

Data from HM Revenue and Customs, that was provided to financial advice firm Salisbury House Wealth, has shown that the…

Start Up Loans delivers more than £100m to London businesses

The Start Up Loans Company (SULCo) has lent more than £100m to small businesses in London since its launch in…

Back to top