SMEs confident of gaining investment funding

Confidence among small businesses in the UK is improving, with three in five now believing they would be successful were they to apply for a bank loan.


The research from Clydesdale and Yorkshire Banks also showed that 51% of businesses would feel even more confidence were their bank to ring-fence money to assist business.


New borrowing could be poured into recruitment drives, the purchasing of equipment or for moving or expanding premises.


The positivity represents a wide view that the economy is recovering, although an air of caution still exists among some companies.


More than a third of businesses admitted to being more likely to invest than a year ago, while 45% said they think there are more opportunities now than at the same point in 2013.


The levels of confidence are noted in official figures too, with growth in UK gross domestic product up by 3.1% year-on-year.


Businesses need to take advantage of these conditions if they are to be successful and this is leading to widespread innovation and idea creation.


Cultivating the ideal lending environment


Finance is required to drive this, but improving conditions contribute to an environment where it is conducive for banks to lend.


Some 35% of businesses also said they had managed to reduce their debt levels through the recession, but the need to proceed with caution is still evident.


Despite the signs of recovery, financial stability is by no means guaranteed and this will lead some firms looking to restructuring as a means of continuing trading.


Seeking guidance from an insolvency practitioner is recommended, as it provides companies facing a difficult period with details relating to what options they may be able to consider.


Acting quickly is a necessity in these instances as the situation could develop rapidly, at which point the potential impact of any business recovery methods would be far greater.


A number of SME lending initiatives are also available to help aid the repayment of existing loans and to aid cash flows among small businesses.


The best steps for these businesses is to explore their options before making a decision based on all of the information that is available to them.


By Phil Smith


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