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This is how small businesses can finance cyber-security essentials

The Krack Wi-Fi attack has catapulted cyber-security back into the headlines and underlined the need for SMEs to invest in protection. But it doesn’t come cheap. How can they afford it? Alternative finance has a role to play.

The Krack attack has the tech industry scrambling and one of the most vulnerable groups is the small business sector. Why? Because SMEs are some of the least protected businesses. A recent study by Duo Security has highlighted just how much investment is required.

According to the cybersecurity company, over a third of the small businesses it questioned are operating at or below the security poverty line. Almost 40% said they will spend nothing on cyber-protection in this financial year. These are eye-opening figures. But are they surprising?

The rising incidence of cyber-attacks, not only the headline-grabbing ones but also the much larger number that go under the radar, and the need to comply with incoming GDPR regulations, is putting pressure on small business owners to invest, but a significant amount are holding back. The reason? The costs involved, not only of enhancing cyber-security but also of meeting other regulatory demands.

Small business owners not only face forking out for cyber-security, but they also have to dig deep to meet the financial demands connected to pension auto-enrolment, minimum wage requirements and national insurance contributions. Then there’s the impact of late payment, business rates reform and an under-performing economy to consider.

So, what’s the solution? This is where alternative finance comes in. Whether used in tandem with traditional small business lending services, or as a stand-alone service, the likes of peer-to-peer lending, invoice finance and asset finance can help SMEs raise capital to maintain cash flow and to invest.

Investing in proper cyber-security, such as Cyber Essentials, can be the difference between growing and stalling. Alternative finance can facilitate this kind of investment and others. This is how a West Sussex company used invoice finance and asset finance services recommended by an alternative finance service adviser in Worthing to grow.

The Krack Wi-Fi attack has reiterated the importance of strong cyber-security. Alternative finance can help under pressure small business owners make sure they have the protection they need.

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

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