SMEs are often viewed as the backbone of the UK economy, the following statistics from The Federation of Small Businesses show us why this is the case;
• Small businesses accounted for 99.3% of all private sector businesses at the start of 2017 and 99.9% were small or medium-sized (SMEs).
• Total employment in SMEs was 16.1 million; 60% of all private sector employment in the UK.
• The combined annual turnover of SMEs was £1.9 trillion, 51% of all private sector turnover in the UK.
Despite this, it has not always been easy for SMEs to gain the finance needed to lay solid foundations for growth.
The landscape has seen great changes though, and Banks are supporting SMEs in more than just finance, assisting with business strategy and advice. Ensuring that once you have the finance needed for your venture, that you have the help in place to make the most of the funding.
Seek out promotions for start-ups such as free banking for a set term – Many Banks are currently offering 12- 18 months free banking to start ups.
Maybe you want to consider a Commercial Loan Broker . To secure a Commercial Loan the Company would be required to prove that it is creditworthy, as such supporting documentation will be needed to prove consistent cash-flow and an ability to pay your liabilities.
Finance through family and friends, you might not be in a position to secure the finance using ‘conventional’ methods. Do you have friends or family that see the potential in your idea, who could buy shares in your Company or who could loan you the money? If doing this, don’t forget it is a Business arrangement and it would be in everyone’s best interest to draw up and agreement so investors and yourself are clear on the terms of your arrangement.
With our Avanti Networking support groups we are able to provide you with great connections to Banks / Solicitors and Funding institutions – do give us a call 01473 558866 for more details.