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Alternative finance can help SMEs beat auto-enrolment blues

Millions of SMEs either preparing for or yet to comply with pension auto-enrolment – alternative finance can help these companies manage the financial impact of the move.

According to The Pensions Regulator, around 1.3 million SMEs are currently in the process of arranging pension schemes that meet the requirements of auto-enrolment, while almost 2 million more face the same challenge over the three years. The introduction of these pension schemes comes with a significant financial burden and alternative finance can help small businesses manage their cashflow at this crucial time.

Accessing funding remains a minefield for SME and small business owners remain very wary of traditional lenders, despite the launch of a number of high-profile small business lending initiatives by high-street banks. Hence, the record number of businesses turning to alternative finance services, such as invoice finance, peer-to-peer lending and crowdfunding, and the important role the sector has to play in assisting SMEs with the financial challenges associated with auto-enrolment.

Furthermore, it is not just the demands of auto-enrolment that alternative finance can help SMEs deal with, but also those of other challenges, such as the introduction of new customer payment systems and the bête noire that is late payment. Indeed, the latter is back in the news again with the government claiming its new Small Business Commissioner will tackle a problem that is currently costing SMEs £26 billion.

This is a critical time for SMEs in the UK and being able to access funding is key if much-reported confidence is to be turned into real growth. This is why alternative finance is taking centre stage.

To find out more about A&T Business Associates services, contact us on 01903 602211 or info@atbusinessassociates.co.uk.

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