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How SMEs can manage the financial impact of the EU vote

There’s already a lot of speculation about the role of SMEs ahead of the vote in June, but whether the UK stays or goes, it is clear that there will be financial implications. How can SMEs safely navigate this turbulence? Alternative finance has a role to play.

A new study by the Federation of Small Businesses suggests that the SME sector vote is still very much in the balance, with almost 50% of the small businesses consulted stating that they are unsure which way they are going to vote. This uncertainty was based on a number of factors, the most prevalent being the economic impact on the UK, the administrative requirements for complying with EU regulations and the cost of EU membership. There are some clear pointers for campaigners on both sides of the fence.

Whether the UK leaves or remains in the EU, there will be a financial impact – the recent dip in the value of the pound is a pretty clear indicator that the next few months, and maybe beyond, are going to throw up some challenges for small businesses in the UK. A sure footing, a clear strategy and a stable financial base are going to be prerequisites for successfully steering through some potentially very choppy waters.

This is why alternative finance is so important. As services such as invoice finance, peer-to-peer lending and crowdfunding become part of the SME finance furniture, it is clear that the transformation of the small business finance sector is almost complete. In the face of caution, immobility and opaqueness from traditional lenders, the alternative finance sector has risen dramatically and its transparent, flexible and affordable services have become hugely popular. The effort being made to raise awareness among small business owners in 2016 will only strength the sector’s position.

As SMEs face the uncertainties linked to the EU vote, they will need a sure financial footing if they are to maintain cashflow and give themselves the platform to develop and thrive despite the headwinds. Alternative finance will play a key role for lots of businesses.

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

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