Filling the gap in SME financing20th October 2016
As more and more bank branches are set to close their doors over the coming decade, the SME community is feeling the hardest hit, according to a new report from the Federation of Small Businesses.
At a time when the UK is reported to have in the region of 8,000 bank branches, the anxiety among SMEs is growing exponentially from the prospect of further 50% closures in the coming decade. One of the many fears that have long plagued the SME community is their ability to access their external funding options. “The rapid pace of bank branch closures across the UK presents some very real and tough challenges for small businesses,” explains FSB executive chairman, Mike Cherry.
The British Business Bank (BBB) and the UK Treasury have been trying to make more SMEs aware of their funding options for a long time. But of those who are aware, many are still stuck in a culture of wanting to fund projects themselves. This attitude, most prevalent among startups, creates a number of potentially crippling issues. Because they’ve spent most of their capital in the early stages of their business, they don’t have the necessary funds for future growth. This means their growth has either slowed or stalled, allowing competitors to seize and establish a foothold in markets long before they can arrive.
For those that aren’t aware of their options, BBB has released the British Finance Guide, offering guidance and advice into the world of business finance. But, the irony in this matter is that there has never been a greater abundance of finance options available to the SME community, in spite of bank closures.
In fact, there are plenty of companies working tirelessly to grant SMEs access to finance. At Rangewell, our values are simple – we’re on your side. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.
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