SME confidence is back in the news, and the importance of a solid financial platform and the role of alternative finance have never been clearer.

According to the CBI, confidence is rising among SMEs on the back of an increase in domestic demand and orders. The news comes despite significant headwinds, such as pension auto enrolment, the National Living Wage, uncertainty surrounding the EU referendum and some general economic fragility.

Notably, the Q1 survey found that expectations for the next quarter are high. However, while such positivity is welcome, it surely comes with a major caveat: the outcome of the EU referendum in June. The Remain v Leave debate rages on but there is evidence that, as business and political heavyweights weigh in, concern is growing over the impact of the vote. Over 80% of small business owners questioned as part of the latest Smith & Williamson Enterprise Index felt that Britain leaving the EU would have a negative impact on their businesses. The research suggests a significant level of apprehension, which has ramifications for SME sector development and performance.

At a time of such uncertainty, stability is vital, and a solid financial platform has an important role to play in providing this. Given the SME finance landscape, which has changed dramatically in recent years with the change in attitude of traditional lenders, alternative finance has to be part of this picture. Services such as invoice finance and peer-to-peer lending are accessible and affordable and provide the flexibility and transparency that SMEs need.

It is great to hear that SME confidence is on the rise again, but it is clear that this optimism shouldn’t be taken for granted. That’s why sound financial planning is so important and why business and government should be focused on raising awareness of alternative finance.

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