SME confidence is at record levels, productivity is at a four-year high and the sector is expecting to see a wave of investment. So, how do we turn this tide of optimism into a flood of growth? The is answer is alternative finance.

According to a new study by AXA PPP Health, two thirds of small business owners are optimistic about company growth over the next five years, while new research from the Clydesdale Bank shows that two thirds of SMEs are set to invest in the growth of their businesses over the next 12 months. In addition, new data from the Office for National Statistics show a healthy growth in productivity for the second quarter of the year.

There is clearly a lot of optimism in the SME sector which, encouragingly, seems to be based on improving performance. However, access to finance remains a barrier to growth – the rapid growth of the British Business Bank over such a short period is testament to this problem, and it is no coincidence that alternative finance plays a crucial role in the Bank’s offer. Recently published data on SMEs bank loan rejections illustrate the continued cautiousness of many traditional lenders.

Furthermore, the government’s recent decision to introduce new legislation to open up the use of invoice finance underlines the importance of alternative finance. Hence, it is clear that services such as invoice finance, peer-to-peer lending and crowdfunding have a major role to play in driving SME sector growth in the UK.

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