Close Brothers Business Barometer
30 January 2015
Close Brothers Business Barometer, a quarterly survey that gathers the opinion of SME owners and senior management across the UK has revealed some interesting statistics : A third of small to medium-sized businesses in the UK have never changed their finance provider!
David Thomson, CEO of Close Brothers Invoice Finance said "It is worrying that so many SMEs don’t appear to be regularly appraising their business finance, which is arguably a little complacent."
“Cash flow is the life blood of any healthy business and so it stands to reason that financial strategy should be reviewed regularly throughout the lifecycle of the business to ensure that the funding in place still meets current business requirements.
“Without taking the time to properly assess their situation and understand the full range of financial options available to them, SME owners and managers could miss out on opportunities for growth as the funding they have in place may not be fit for purpose.”
Almost a third of those SMEs that have switched providers in the last 10 years have moved from a high street bank to an alternative lender.
And of that number, two fifths believe alternative sources of finance are less expensive than traditional lending, while 37% changed because alternative lenders offered more flexibility.
Mr Thomson also stated that “Invoice finance is one such type of alternative finance and according to recent findings by the Asset Based Finance Association (ABFA), its use amongst businesses is at an all-time high. However our research shows that there continues to be a lack of awareness amongst small and medium-sized businesses, with a third of those we talked to admitting they don’t understand how invoice finance works."
Are you looking for an alternative source of finance? Capital Equipment Leasing can help!
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