As with every New Year, people begin to contemplate their careers and unsurprisingly, they often view it as a time to change career paths and perhaps follow their true interests.
With this in mind, there's no doubt that we can expect to see plenty of business brains choosing 2016 as their year to start up. Add to this the high level of optimism for the coming year that small to medium sized businesses are expecting, it's set to be an exciting year for new, and more mature, small businesses.
Finance is ultimately one of the key aspects of getting a business up and running, and sustaining it enough to consider expansion. At the end of last year, we heard that the Funding for Lending scheme has been extended to 2018, scrapping the January 2016 end date. This move should have presumably been welcomed with open arms by small businesses and the wider community.
However, we wanted to really get to grips with how small to medium sized businesses understand finance. In a recent OnePoll survey, we found that only 36% would go to their bank for funding and would completely trust the advice and options given to them.
The study also revealed that almost a quarter (23%) of small to medium sized business owners would actually go it alone and try to find the best financing options without seeking the advice of third-parties.
There are a vast amount of alternative finance platforms that have emerged in recent years, all providing solutions to solve all manner of small business funding issues. Ranging from peer-to-peer methods, and crowdfunding techniques, there's an enormous array of alternative finance options on offer for businesses.
But our data also reveals that 7% of small to medium sized businesses still admit to not knowing where they can get access to finance, or advice for funding.
Undoubtedly, with so many different solutions on offer it can become a confusing landscape for time stretched small to medium sized businesses owners. What is peer-to-peer? Can I get a loan for refinancing debts? What do I need to access a short-term loan? These are all valid questions, and despite the complexity of such a space, it is simply unacceptable that 7% of small to medium sized businesses still don't have a clue as to where they can access finance.
Despite this, only 5% of small to medium sized businesses say that they know about these aggregators and comparison sites. Our results show that small business owners are still left in the dark when it comes to finance, but by raising the awareness of the help available we think we can provide more opportunities for small businesses.
Pushed for time, and money, small to medium sized businesses simply don't have the resources to get to grips with all of the options out there. That's where comparison platforms come in, they are able to find the right financial solution to fit the business. Once presented with the solutions available, it can be hard not to become over enthusiastic and jump at the first offer granted. However, it's a competitive industry and lenders will do their best to attract new custom. But again, this is where these platforms can be your knight in shining armour.
Before encouraging small to medium sized businesses to apply for various government-backed funding schemes already in place, we must ensure that business owners understand all of the options available to them as a first step.
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With this in mind, there's no doubt that we can expect to see plenty of business brains choosing 2016 as their year to start up. Add to this the high level of optimism for the coming year that small to medium sized businesses are expecting, it's set to be an exciting year for new, and more mature, small businesses.
Finance is ultimately one of the key aspects of getting a business up and running, and sustaining it enough to consider expansion. At the end of last year, we heard that the Funding for Lending scheme has been extended to 2018, scrapping the January 2016 end date. This move should have presumably been welcomed with open arms by small businesses and the wider community.
However, we wanted to really get to grips with how small to medium sized businesses understand finance. In a recent OnePoll survey, we found that only 36% would go to their bank for funding and would completely trust the advice and options given to them.
The study also revealed that almost a quarter (23%) of small to medium sized business owners would actually go it alone and try to find the best financing options without seeking the advice of third-parties.
Cutting through the confusion
These results clearly show how small to medium sized businesses are still left in the dark when it comes to business finance. It is of course great to see that the government have extended the Funding for Lending scheme, but before we praise moves such as these, it's vital that small business owners are made well aware of the opportunities available to them.There are a vast amount of alternative finance platforms that have emerged in recent years, all providing solutions to solve all manner of small business funding issues. Ranging from peer-to-peer methods, and crowdfunding techniques, there's an enormous array of alternative finance options on offer for businesses.
But our data also reveals that 7% of small to medium sized businesses still admit to not knowing where they can get access to finance, or advice for funding.
Undoubtedly, with so many different solutions on offer it can become a confusing landscape for time stretched small to medium sized businesses owners. What is peer-to-peer? Can I get a loan for refinancing debts? What do I need to access a short-term loan? These are all valid questions, and despite the complexity of such a space, it is simply unacceptable that 7% of small to medium sized businesses still don't have a clue as to where they can access finance.
Leading the way
However, amid the confusion, a range of specialist 'robo' advisors have also emerged. These platforms are designed to help small to medium sized businesses understand how alternative finance works, and the options available to them.Despite this, only 5% of small to medium sized businesses say that they know about these aggregators and comparison sites. Our results show that small business owners are still left in the dark when it comes to finance, but by raising the awareness of the help available we think we can provide more opportunities for small businesses.
Pushed for time, and money, small to medium sized businesses simply don't have the resources to get to grips with all of the options out there. That's where comparison platforms come in, they are able to find the right financial solution to fit the business. Once presented with the solutions available, it can be hard not to become over enthusiastic and jump at the first offer granted. However, it's a competitive industry and lenders will do their best to attract new custom. But again, this is where these platforms can be your knight in shining armour.
Before encouraging small to medium sized businesses to apply for various government-backed funding schemes already in place, we must ensure that business owners understand all of the options available to them as a first step.
To comment on the article below, please ensure you sign up for or log in to UKBF!
