There is constant debate as to whether the UK’s traditional mainstream banks are lending enough to SMEs.
There are good reasons why, following the financial crisis, banks are struggling to meet the demands for finance from SMEs. The main finance issue is the need to significantly increase capital levels. Another problem is the lack of awareness of finance options for SMEs.
Many businesses aren’t prepared to wait for things to change and are turning to alternative finance providers, like Just Cash Flow PLC, that employ experienced underwriters able to make prompt decisions based on years of banking and business experience. Just Cashflow is proud of the range of flexible finance solutions we provide and were delighted when one customer said that his experience with us was, “just like business banking used to be”.
However, recent research commissioned by Just Cashflow shows that around 30% of businesses that are turned down by their bank simply give up and shelve their plans for growth and development.
One of the key reasons for giving up was simply not being aware of the alternative sources of finance available. When I analysed the research in more detail I was surprised and slightly disappointed, to discover that almost seven out of ten women in business who decided to shelve their business development plans fell into this category as opposed to just one in five of men, due to their lack of awareness of the alternative finance options available to them.
This lack of knowledge and awareness about the alternative finance sector is one of the keys reasons Just Cashflow is sponsoring the Women In Business Expo in Birmingham on 19th June as it provides us with a great platform to explain where alternative financing fits into the picture.
Where businesses may not immediately qualify for an overdraft or loan from their bank or are concerned the process will simply take to long, so alternative financing could provide the ideal solution. We believe the alternative finance market compliments the mainstream traditional banks and offers businesses an additional avenue to finance.
Just Cashflow also aims to assist businesses to improve their creditworthiness. A record of drawing down on one of our finance facilities, meeting regular interest payments and repaying in full means we will be able to provide an excellent credit reference. Therefore, here at Just Cashflow, we’re able to assist our customers with future applications to either alternative or mainstream traditional lenders. We also work alongside other lenders to ensure our customers are accessing the correct lenders and forms of finance that they require.
I am looking forward to future research being undertaken and women in business being equally aware of the alternative financing market and what it has to offer.