Patron news

SMEs showing resilience despite losing 30% of business income New research from Aldermore reveals that the pandemic has caused a 30% loss in monthly business income, a small improvement from 34% in April for the average SME.

Nearly one in five (18%) small businesses have seen a decrease of more than 70% of their business income. To ensure their survival, many businesses are proactively taking steps to protect their business. Two in five (38%) SMEs have adjusted their business plans due to the pandemic as they anticipate future issues such as a fall in revenue (38%), another period of lockdown (32%) and an ongoing period of economic downturn (30%).

The NACFB Patron has created a dedicated campaign hub on its website which features inspiring case studies of small businesses and brokers from across the UK.

Tim Boag, group managing director, business finance at the NACFB Patron, said: “We’ve launched our ‘Small But Mighty ’ business campaign to share real stories and experiences of SMEs who are tackling the challenges of COVID-19, as well as providing businesses with special guides that offer tips on a range of measures such as how to reduce costs, ways to adapt their business, or find suitable funding opportunities in these uncertain times.”

A study commissioned by Allica Bank has revealed that the practice of regular training correlates strongly with high performance in SMEs and will be vital to businesses’ prospects of a swift recovery post-COVID.

The study analysed data from over 1,000 companies and ranked their success on a scale that evaluated factors including productivity, growth, consistency, and outlook. The NACFB Patron’s study showed that routine staff training is a common characteristic among the most successful SMEs.

47% of the 100 highest scorers on the SME Performance Index provided training for employees at least on a quarterly basis. However, nearly half of all small businesses (46%) only provide training once a year or less, inadvertently hindering their growth and success prospects. Frequency of training also differed across sectors. 34% of legal businesses provide training for staff once a month compared to just 6% in the hospitality and leisure sector.

Chris Weller, chief commercial officer, Allica Bank, said: “The provision of regular training not only builds these characteristics into teams but serves to maintain a sense of value and togetherness that will boost morale, aide retention and improve performance – all of which contribute to the ongoing success of a business.”

Martine Catton has been appointed chief commercial officer for Just Cash Flow PLC. The NACFB Patron’s executive chairman, John Davies, said. “Martine will further strengthen our management team with her extensive industry experience that includes key roles with Catalyst Business Finance, Aldermore Bank, Barclays and Hitachi Capital.

“Over the past three years I’ve worked closely with Martine as a fellow Board member of the Association of Alternative Business Finance and have been tremendously impressed with her industry knowledge and the fact she shares my passion for helping UK SMEs invest and grow.”

Martine, who also sits on the NACFB board of directors, said, “I’m delighted to be joining such a well-managed, ambitious business that shares my desire to deliver innovative solutions for the SME community.

“I’m pleased to be able to continue to develop relevant and creative facilities as COVID has changed the landscape and the toughest challenges surrounding working capital are still to come. SMEs are going to be key to the economic recovery and they will need the support of innovative alternative lenders.”

Haydock Finance has negotiated a £5 million block discounting facility with fellow NACFB Patron Wesleyan Bank. During the height of the pandemic, Haydock maintained their commitment to supporting SMEs across all sectors which has resulted in a surge of asset finance applications.

With net receivables exceeding £320 million, Haydock has reported a 42% increase in new business levels for July 2020 against July 2019, and a further increase of 70% for August 2020 against August 2019.

Andy Taylor, sales director at Haydock Finance, explains: “We explored other block discounting providers, but Wesleyan’s prompt service met our demands. Their facility will allow us to support both existing and new customers with asset finance investments plus provide us with the flexibility to help with cashflow related applications.”

Wesleyan’s new funding facility will be used to help meet some of this continued growth in demand. Richard Baker, head of block discounting at Wesleyan Bank, says, “Haydock Finance has become our fifth new block customer this year. Not only have we secured the business, but those that have partnered with us are already talking to us about future funding requirements.”