Nearly 20% of SMEs have lost out on at least one business opportunity in the past year due to a lack of available funding
Raising funds is vital for a business, whether you’re looking to improve cashflow or expand your current operations.
Aldermore bank surveyed more than 1,000 business owners and found that on average SMEs are losing out on £77,651 a year on income due to missed opportunities.
Nearly 20% of the SMEs surveyed reported missing out on at least one business opportunity in the past year due to a lack of available funding.
Thirty-two per cent of medium-sized firms with 50 – 249 workers said they have been impacted by the absence of funding. The average impact on income is £112,508 per organisation over the past 12 months.
Twenty-eight per cent said they used traditional bank lending such as overdrafts and loans to fund their business, while 14% said they used alternative sources such as assets, crowdfunding and invoicing.
Carl D’Ammassa, Group Managing Director, Business Finance at Aldermore, said: “With more than two fifths of SMEs saying that their key business priority for 2017 is achieving business growth, it is frustrating to see that so many firms are missing out on business opportunities due to a lack of appropriate funding.”
How you invest or fund your business will depend on your business goals. Do you want to improve cashflow, expand your operations or launch a new product or service?
Once you’ve identified your goals you can start sourcing the appropriate funds for your needs.
There are multiple sources of finance available to secure the capital you need for your business. Some sources include:
Taking out a loan from a bank can be good for immediate funds but it’s important to make sure that you’re in the position to pay off any interest on outstanding debts.
Overdrafts provide a fast and flexible way to access short-term funds. Similar to loans there will be interest on the money borrowed depending on your overdraft limit.
If a limited company, you can sell a stake in your business to attract further investment. There will be no interest to pay off but will you gain less control over your business and decision making.
Talk to Condies about securing finance for your business