The threat posed by hackers to businesses is back in the headlines following the cyber-attack on Jaguar Land Rover. But, for the all attention on the carmaker, it is not big firms that are being increasingly targeted – it is smaller ones. How can they afford better protection?

Big brands in the headlines; small firms in the crosshairs

The recent cyber-attack has certainly caused Jaguar Land Rover problems – production was temporarily shut down and workers were sent home, and now it has emerged that some data has been comprised. The carmaker joins a growing list of big brands that have come under fire from hackers in 2025 (Marks & Spencer, Harrods, etc.).

However, Jaguar Land Rover has the resources, and deep enough pockets, to bounce back quickly from the disruption caused by the attack. Small businesses aren’t in the same position and it is these firms that find themselves more and more in the crosshairs of increasingly sophisticated hackers.

It is estimated that one in four businesses has been hit by a cyber-attack in the last year and according to research from Cisco, almost 45% of cyber-attacks are targeted at small and medium-sized businesses, with the average cost of such an attack running to almost six figures. A key factor in the vulnerability of small businesses is insufficient cyber-security, the reason for which lies largely in cost.

Another important financial angle related to cyber-attacks for small businesses is the consequences of a cyber-attack. The data from Cisco show that over 80% of small and medium-sized businesses are not financially prepared to recover in the event of an attack. Given the pressure on margins in the current climate, there is a significant risk that a cyber-attack could prove crippling for many small businesses.

How alternative finance can help with spending on cyber-security

It is hardly surprising that small businesses are finding it difficult to invest in strengthening cyber-security measures, from staff training and specialist recruitment to more sophisticated software – the state of the market leaves little wiggle room for significant investments. However, the urgency and gravity of the situation is clear – they have to find a way.

This is where alternative finance can help.

As small business lending from traditional sources remains subdued as the end of Q3 comes into view, with firms still experiencing difficulty in accessing finance from high-street banks, services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate.

These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including asset finance, invoice finance and asset-based lending. This is further proof that alternative lenders are increasing filling the small business funding gap.

Small firm finance options for cyber-security investment

The cyber-attack on Jaguar Land Rover is yet another warning of the threat that hackers pose. While discussion is likely to focus on big brands, the attacks should also put smaller businesses on alert. They are an increasingly popular target and they are vulnerable in ways larger firms aren’t.

Against this background, the need for greater investment in cyber-security by small businesses is clear. They have to find a way to balance safeguarding cash flow with investing. This is why it is important that key decision-makers are aware of all the finance options available to them, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.