Most small businesses and small to medium-sized enterprises (SMEs) will access just one funding solution to assist with starting up the business, new research published last week has found.
1,000 businesses were surveyed by the University of Surrey, with 58% indicated that they had used just one type of funding. More than four in 10 still relied on a solitary source of finance to assist with ongoing cashflow as the business grew.
Many of these businesses will also be heavily reliant on reinvesting profits or borrowing cash from family or friends, the University suggested.
Study Director Professor David Gray added that businesses needed to find viable financial solutions for the longer term as it was the “only way to stimulate and sustain high-growth businesses”.
The research also indicated that SMEs are valuing customer satisfaction and retention as two key factors to determine yearly success, alongside growth in business profits.
Invoice Finance as a long-term funding solution
As invoice finance enables businesses to access more and more cash as they grow, it’s a solution which is highly appropriate for ambitious SMEs and small businesses.
"Skipton Business Finance can offer what every company needs - CASH (Clear And Simple Help)" - Sandra at an engineering company in Merseyside