Ultimate Business Cash

HOM E

HOW IT WORKS

Fast, friendly, flexible and affordable short term finance for growing businesses

ABOUT US FAQ'S

The Future’s Looking Bright for SME Lending S eptember 4, 2013

4

Business Loans

0

OTHER SERVICES

BLOG

Categorie s Select Category

Ultimate Business Tweets My Tweets

Ultimate Business Ca sh Facebook The poor economic environment and impact of the banking crisis has impacted on many busines ses’ confidence and a knock on effect on their appetite for s eeking bank finance.

That s aid, in recent months there have been s mall s igns

Ultimate Business Like

51 people like Ultimate Business C

that confidence is coming back.

However, whils t the debate continues as to the extent to which demand and/or s upply is s ues are contributing to lower

Facebook social plugin

CONTACT

levels of lending to S MEs . The emergence of new and alternative lending s hould put this debate to res t as we continue to monitor the S ME bus ines s borrowing trends .

The BDR C S ME F inance Monitor s ugges ted that in Q2 2013 whils t S MEs indicated flat profitability, they grew in the pas t 12 months and forecas ted further growth in the next 12 months . The report als o s ugges ted that that whils t many S ME bus ines s es s till felt that the economy is the primary barrier this is mentioned les s in the lates t quarter. However, the Britis h C hambers of C ommerce increas ing their growth forecas ts from 0.9% to 1.3% may impact this moving forward.

The BDRC Finance Monitor s ugges ted that the percentage of S ME bus ines s es that have s een growth in the las t 12 months had increas ed from 39% in Q1 2013 to 44% in Q2. We can als o take s ome additional confidence factors from the report with 51% of S ME bus ines s es s ugges ting that they would s ee growth in the next 12 months , an increas e of 3% agains t the previous quarter.

Impact of Credit Reference Agencies We s hould als o note that C redit R eference Agencies play a big role in the trade as s ociated with any company, whether it is s ourcing of bus ines s loans or obtaining s upplies . Therefore it is s lightly concerning to note that, whils t fewer S ME bus ines s es reported credit is s ues (c.10%), the lowes t level s een to date, the volume of S ME bus ines s es that were agencies reached t levels This could be another cons idered “wors etheir thanhighes average� by .the credit reference

root caus e to the lack of confidence / demand for finance.

New Kids on the SME Financing Block Availability of funds including of business loans and overdrafts provided by banks have continued to be a major talking point amongs t the government and the media and with 24/7 availability of news , will have als o contributed to confidence and appetite to lend. Inevitably impacting on S ME bus ines s es ability to reinves t and grow. Therefore the government has s ought to counter this by offering initiatives s uch as the F unding for Lending S cheme and alternative methods of finance which have s tarted to emerge.

The emergence of alternative lending will inevitably help S MEs to s ource new methods of finance, the ability to s ervice their working capital needs and inves tment requirements and to s ource the much needed bus ines s finance that will allow them to reinves t in their bus ines s es and realis e their full potential.

We s hould note that larger companies have traditionally had acces s to complex s yndicated finance facilities and bond markets which have enabled them to continue to put the competitive s queez e on the s maller bus ines s es . However, thes e facilities can take time to obtain, s ometimes weeks or months and they are often s ubject to tough covenants .

Therefore with the new alternative lending facilities s uch as s hort term bus ines s loans available from the likes of Ultimate Business Cash the ability to react is now in the

hands of the S ME bus ines s owner.

This s ugges ts that the future for S MEs is bright.

7

Related Posts

Google +

Anthony Pers se

Follow

0

← Ultimate Business Cash will “Show SMEs t

he money!”

What’s the Risk?

→ ADVICE MS

|

PRIVACY & COOKIES

|

TER

WE ARE VERY SOCIABLE: FACEBOOK

T WITT ER

L INKED IN

YOUTUBE

DESIGNED BY: WWW.METAMORPHMEDIA.CO.UK