Entrepreneurs and business owners are actively seeking out alternative methods of raising cash, as concerns have arisen about how difficulties accessing traditional external finance could block expansion plans over the next 12 months, a new survey has revealed.
The Entrepreneur Confidence index indicated that almost seven in 10 respondents believe they will struggle to access capital over the next year, with 22% believing it will be ‘very hard’ to do so.
These figures were even more striking when taking into consideration the average turnover of each business being £54 million.
It is especially important that companies go ahead with growth and expansion plans during hard times to ensure they reap rewards when the economy returns to a steady footing once again.
As more mis-selling scandals have hit the banks in recent weeks, funding solutions such as invoice finance, which have weathered the downturn well, are likely to continue helping UK business fund growth and expansion plans for the years ahead.
Invoice Finance for growing companies
Invoice finance is rapidly gaining a reputation of being a highly-appropriate funding solution for businesses looking to grow and put expansion plans into motion.
As it releases cash to a business based on the value of its unpaid invoices, it is able to grow in line with a company.
As more invoices are issued, more money is available for a company to access through both invoice factoring and invoice discounting facilities.