SME Growth Plans for 2015
According to a report from the British Business Bank named “Small Business Finance Markets 2014” the demand for finance among small businesses is changing, as an increased emphasis on growth for these companies is highlighted.
The report states that 54% of companies raising finance did so to either purchase fixed assets or to expand their business. This is an increase compared to the 39% recorded two years previously.
Keith Morgan, CEO of British Business Bank said: “There is increasing confidence among UK small businesses and an appetite for growth.”
Businesses who are seeking finance to aid in their growth will need to have a stronger understanding of the different types of finance available. Results of this survey showed the following understanding from businesses when it comes to non-bank finance:
- 85% were aware of lease or hire purchase
- 15% knew about mezzanine finance
- 36% were aware of angel investment
- 55% were aware of venture capital
- 35% knew about peer-to-peer lending
- 32% knew about crowdfunding
Keith Morgan said: “The challenge now is to connect the merging demand for finance with the new forms of funding that are becoming available. The British Business Bank is working to encourage innovation, promote diversity and share information to develop a more broadly based and accessible lending market for smaller businesses.”
Non-bank finance is a growing market and holds valuable opportunities for small and medium sized businesses (SMEs) to find finance and investment for their businesses in order to help them grow and expand as they wish.
Some helpful websites regarding these different sources of finance are listed below.