What’s the state of small business confidence in Q2?

According to new data from the latest ACCA and IMA Global Economic Conditions Survey, small business confidence slipped to a record low level in Q2. One of the leading causes revealed by the study was rising operating costs, cited by 80% of businesses as a principal barrier to growth.

At home, businesses pointed to higher taxes and an increase in employment costs, including in relation to a hike in the National Living Wage, as well as growing concerns about late payments, despite the ongoing effort of the government to combat this practice. Further afield, firms highlighted the impact of the war in the Middle East on energy prices and supply chains.

The results of the latest ICAEW Business Confidence Monitor paint a similar picture with regard to business confidence in Q2, with the data showing a sharp fall. Again, rising operating costs are at the forefront of the trend, impacting spending across the board.

According to the Index, business confidence fell to -14.6, the lowest on record since Q4 2022. In terms of rising costs, firms cited spiralling energy costs, increasing labour costs and a five-year spike in late payment as key pressures. The drop in sentiment was felt across almost the entire industry, with eight out of the nine sectors monitored by the Index seeing downturn, most significantly in business services and property.

How alternative lenders can help with essential small business investment

The results of the recent surveys on business confidence make pretty grim reading, with the historic low level looking set to continue for almost half a decade. Firms need meaningful economic growth, coupled with the ability to invest, in order to turn this trend around.

With regard to investing, access to finance in critical, and prolonged caution from traditional banks is another obstacle that is squashing development plans. This is where alternative finance can help.

In response to the squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including invoice finance, and there has been recent calls for the initiative to be expanded significantly to help smaller businesses struggling to access finance. Such development offers further proof that alternative lenders are increasing filling the small business funding gap.

Small business options for financing investment in H2 2026 and beyond

Although they’ve made the headlines, the findings of the recent surveys are hardly surprising – they won’t be a shock to small business owners that have been battling serious headwinds for a long time. However, small firm investment remains critical.

Of course, achieving this remains highly challenging, not least because legacy lenders continue to cautious about small business lending. 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.

Employment reform in 2026 and 2027 and the costs for small firms

Small businesses need little reminding of the employment law reform already introduced in 2026. Changes have enacted include day-one rights for paternity and unpaid paternal leave and the expansion of statutory sick pay, as well as the need to maintain traceable records of annual leave and holiday pay for at least six years.

Upcoming changes include the extension of time limits for employment tribunals and the introduction of stricter frameworks and liability around harassment in the workplace. Next year, employee protection against unfair dismissal is due to be strengthened, while regulations around firing and hiring and zero-hour contracts are scheduled to be further tightened.

While there are clear, solid reasons for these measures, there are financial consequences for businesses, with the onus on smaller firms particularly pronounced. Absorbing increased direct labour costs and stricter compliance requirements, with the knock-on demands on administrative resources, is highly challenging for smaller firms, which don’t have the resources available to larger companies.

For example, there is the risk of increased sick pay costs and higher tribunal and other legal costs, while firms must also manage the costs associated with moving away from zero-hour contracts to a system based on guaranteed hours. Then there is the impact on wage bills of higher National Living Wage rates.

How alternative lenders can help with increasing employment bills

While it is difficult to argue against the reforms, which are based on strengthening employment rights and making the employment system fairer, at the same time, it is undeniable that the changes carry a notable financial cost for smaller firms. And given the current climate, the timing could hardly be worse.

The demands on small business cash flow are already high, with essential investment required in a range of areas. Continued caution from traditional banks towards small business lending adds a further layer of difficulty. This is where alternative lenders can help.

Alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, by offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Small business finance options for managing rising employment costs

It is hardly surprising that many small businesses are reacting badly to the overhaul of employment rights. Despite the focus on making the employment system fairer, the added costs for smaller firms comes at a time when many are already at breaking point.

Access to finance is critical if small businesses are going to manage the extra costs and survive. As such, with legacy lenders remaining resolutely cautious, it is important that key decision-makers at small firms 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 Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk

How does the SME sustainability investment landscape look?

A new study from the Small Business Institute (SBI) has underlined the critical state of small business investment in sustainability. According to the research, while more and more SMEs are seeing the benefits of improving their sustainability efforts, funding remains a key barrier to the development of net-zero strategies.

The SBI data shows that nearly half of SMEs have put more into sustainability development in the last year, while of those planning to expand plans going forward, a quarter will do so on a significant scale. However, at the same time, it reveals that cost remains a major obstacle to investment, along with a lack of time and support, and difficulty in understanding what sustainability development requires.

The findings are broadly encouraging but highlight the challenge that financing development involves, mirroring the results of similar studies carried out earlier in the year. According to research from the British Business Bank, NatWest and Better Bankside, sustainability action is a priority for less than a third of SMEs, while sustainability has notably dropped down the list of priorities for firms in recent years.

Similarly, research from Novuna shows that while over a third of manufacturing SMEs are carrying out sustainability-related activities on a daily basis, almost 80% cite operational and market pressures as a key challenge.

How alternative lenders can help with financing SME sustainability investment

The latest research on small business investment in sustainability shows a largely unchanged picture – prolonged market uncertainty coupled with continued caution from traditional lenders is making realising net-zero ambitions challenging.

Nevertheless, investment is critical, not least as sustainability action is increasingly becoming a necessity in supply chains, with larger companies demanding that strategies are in place and standards are met as terms of business. This is where alternative finance can help.

In response to the squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including invoice finance, and there has been recent calls for the initiative to be expanded significantly to help smaller businesses struggling to access finance. Such development offers further proof that alternative lenders are increasing filling the small business funding gap.

SME options for raising finance for sustainability-led investment

The necessity of sustainability-led investment is increasingly clear for SMEs, but while the appetite for net-zero-led evolution continues to grow, cost remains a major barrier to such development, which is putting future growth at risk.

Access to finance is critical to the successful implementation of plans. However, with traditional lenders steadfast in their caution, SMEs are finding this challenging. 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.

The proposals from Burnham point towards another significant shakeup of the business rates system. Such reform would come not long after a major reshaping of the tax introduced earlier this year, the reaction to which has been decidedly mixed. While there has been lower rates for some small firms, others are facing an increase in bills.

How will the new business rates reform impact small firms?

The ongoing concern is perhaps why the next prime minister has announced details of yet another restructuring. At the heart of the new proposals is a plan to raise the threshold for 100% Small Business Rates Relief by 50%, which would mean that more small businesses qualify for the exemption. An increase in property taxes for larger firms, in particular large warehouses, would help cover the costs.

As to the response to the latest proposals, the new reform plans is certainly sparking debate and making headlines. With regard to small firms, further help with regard to business rates would certainly be welcomed, with the current tax framework, including business rates, increasing coming under fire for being unworkable. According to the Confederation of British Industry, almost a third of businesses have said that the tax system is having a major impact on investment, causing them to cancel, reduce or delay spending.

However, while there is small business sector positivity, there are also some notable caveats. The cost of the reform is already a talking point and such is the price tag that the likelihood of the plans making it through to the implementation stage without change has to be questioned. Also, there is a matter of the time frame – there is a significant distance between proposals and policy, and many small businesses can’t afford to wait.

How alternative lenders can help with impact of business rates bills

Given the current market climate and the reception that the last business rates review received, it is easy to see why further change is being proposed. But there are no guarantees and change takes time. From a small business perspective, the new plans are encouraging but in the meantime the bills have to be paid.

The bottom line is that these firms have to find a way to manage the impact on cash flow. Access to finance is essential, but traditional lenders are continuing to prove cautious with regard to small business lending. This is where alternative lenders can help.

Alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, by offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Small business finance options for managing tax bills in H2 2026

While the latest proposals to restructure the business rates landscape offers some small businesses the prospect of reduced bills, nothing is set in stone, and nothing is going to happen overnight.

Whatever the size of the bills, small firms have to be able to manage the impact on cashflow and put themselves in a position where they are able to both meet their obligations and invest in essential development.

To do this, access to finance is pivotal, and with legacy lenders remaining cautious, it is important that key decision-makers are aware of all the finance options available to them. This includes the services of alternative lenders.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk

What is the next cyber-security threat for small businesses?

The situation couldn’t be much clearer for small businesses: the research on the damage that cyber-attacks can inflict on firms continues to mount, underlining the risks and challenges that they face, both in terms of managing the fall out of an attack and in finding a way to put stronger protection in place.

And the threat continues to evolve. A new study from Gallagher and the Centre for Economics and Business Research highlights a threat that many smaller firms may not have fully considered – the cost of litigation. While it is an issue largely for larger businesses at present, it’s a trend that is likely to grow in the small business sector as investment in cyber-security and the quality of cyber-security strategies and systems comes under greater scrutiny across supply chains.

According to the research, of a total bill of £11.7 billion linked to cyber-attacks involving large businesses in 2025, litigation was revealed as the second largest cost, after direct losses from disrupted operations. Then there are costs related to lost assets, including intellectual property, regulatory fines and reputational damage.

How much are cyber-attacks costing the SME manufacturing sector?

One area where there is notable vulnerability, including potentially in relation to litigation as well as disruption, fines and harm to reputation, is manufacturing, and new data from ESET on cyber-security threats in the SME manufacturing sector highlights the scale of the threat to these firms.

According to the study, over three quarters of UK manufacturers had to deal with a cyber-security incident in the last year, with a whopping 95% revealing that their business was disrupted because an attack. For 75% of these businesses, production was affected for between one and seven days, with the bill for disruption at over £250,000 for more than 50% of those experiencing an incident. The cost for almost 20% of firms was over £1 million.

How alternative lenders can help finance investment in cyber-security

While a lack of awareness and understanding of the problem remains an issue for small businesses, with the ESET study showing that only just over a fifth of SME manufacturing companies make cyber-security the responsibility of top-level executives, it is cost that it proving the most significant barrier to improving cyber-security.

In a climate where uncertainty has become the only certainty and traditional lenders remain resolutely cautious with regard to small business finance, it is hardly surprising that firms are finding it difficult to put more money into cyber-security, whether in terms of staff training or upgraded software and systems. This is where alternative finance can help.

In response to the squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including invoice finance, and there has been recent calls for the initiative to be expanded significantly to help smaller businesses struggling to access finance. Such development offers further proof that alternative lenders are increasing filling the small business funding gap.

Small firm options for raising finance for cyber-security investment

Awareness isn’t really the issue when it comes to small business investment in cyber-security – it’s cash, and access to finance. And recent research is only a reminder of the dangers that this threat poses to vulnerable firms, in particular as it continues to evolve.

While a reluctance to commit resources is understandable in the current climate, it is vital that small businesses put the necessary level of protection in place. 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.

Which small firm taxes are rising and what are the consequences?

According to new research form Premium Credit, more and more small businesses are looking to spread the cost of their tax bills as they try to manage higher rates and greater demands on their capital. The number of firms seeking help with the cost of VAT, corporation tax and self-assessment tax bills has risen by a fifth.

The rise in the employers’ national insurance contributions has been the headline tax rise, but small businesses are also dealing with challenges relating to business rates (despite government reform in this area), business sale tax, capital allowances and wage increases. With regard to the latter, the National Living Wage for workers aged 21 and over has risen to £12.71 per hour.

This difficult fiscal landscape, combined with ongoing market uncertainty, means that small businesses continue to face significant pressure on margins and cash flow. As well as tax bills, firms are having to manage demands to invest in areas such as cyber-security, sustainability-led development, workplace wellbeing, digitalisation and AI, and talent recruitment and retention.

Interestingly, the news about managing tax bill payment comes as HMRC has revealed that small businesses are responsible for two-thirds of the country’s £59 billion tax gap for 2024-2025. The most common unpaid bill was corporation tax, with the shortfall in this area rising by over 18% compared to the previous year.

How alternative lenders can help with paying higher tax bills

The findings from Premium Credit and HMRC make for interesting and concerning reading. They paint a picture of sector that is increasingly struggling to keep its head above water as conditions remain highly challenging and the bills keep coming. Another change in prime minister does little to suggest that the climate will meaningfully improve in the short term.

At the same time, while access to finance is integral to managing costs, small business lending from traditional sources remains difficult as Q3 approaches, intensifying the squeeze on firms. Notably, almost 40% of firms are finding accessing affordable finance one of their biggest challenges, while there has been a call for the introduction of legislation that would require banks to increase access to low-cost lending for small businesses.

This is where alternative lenders can help. In response, alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, by offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Small business finance options for affording increased tax demands

Higher bills, including tax bills, are never easy to manage but in current conditions, this burden is particularly challenging. But these costs have to be met and small businesses have to find a way to meet deadlines and make payments while safeguarding cash flow.

As such, at a time when legacy banks remain cautious with regard to small firm lending, it is important that key-decision makers are aware of all the available finance options, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.

What’s holding back SMEs despite recent government reform?

According to Damar Training, almost two thirds of SMEs interviewed for its new study are ready to take apprentices on board. This suggests a significant level of openness to making greater use of apprenticeship schemes, which have the potential to help fill key skills gaps in the workplace.

However, a number of factors are blocking such investment, including claims that schemes are ill-suited to smaller businesses, insufficient communication and support, and, most tellingly, cost. With regard to the latter, the Damar Training research showed that there is concern regarding true costs, hidden fees and how levy transfer works.

Notably, these findings come in the wake of a major shake-up of the structure and funding of apprenticeship schemes. Among the highlights, from October, SMEs that hire apprentices aged between 16 and 24 will receive a £2,000 hiring grant, while larger employers can transfer up to half of their unused apprenticeship levy funds to support SMEs. At the same time, SMEs can get a £1,000 grant for hiring apprentices aged 16 to 18.

While a number of apprenticeships have been defunded, notably those aimed at older staff, it is argued that the reform will help tackle specific skills shortages. For example, there are two new apprenticeships being launched in retail and hospitality, with a tailored scheme available for 16 and 24 year olds.

How alternative finance can help SMEs invest in apprentices

Whether the changes to the apprenticeship system move the needle as far as SME engagement and investment goes remains to be seen. The greater flexibility and tailoring to smaller business needs are positives, but cost remains a sizeable problem.

Investing the current climate is undeniable difficult, with little to suggest that the uncertainty undermining the market will come to an end soon and accessing finance from traditional lenders remaining challenging.

So, how can firms find a way to make the leap? This is where alternative finance can help.

In response to the squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including invoice finance, and there has been recent calls for the initiative to be expanded significantly to help smaller businesses struggling to access finance. Such development offers further proof that alternative lenders are increasing filling the small business funding gap.

Small firm finance options for increasing spending on apprenticeships

It is hardly surprising that concerns over value and cost are stopping SMEs from committing to apprenticeship schemes, despite an openness to such a step and government reform. However, at a time when filling essential roles remains difficult, it is clear that strengthening engagement and increasing the use of this resource offers benefits.

Accessing finance is key to unlocking this potential. As such, with traditional lending routes providing limited opportunities, it is essential that key-decision makers are aware of all the finance options available to them. This includes 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.

What does the workplace stress landscape look like?

A recent study from Hiscox underlines the extent to which workplace stress is affecting small businesses. According to the research, a staggering 90% of SME owners can’t get a good night’s sleep as a result of worries over business risks. The 2026 Burnout Report paints a similar picture, with the survey revealing that 20% of workers took time off because of poor mental health, rising to almost 40% for 18 to 24 year olds.

This makes grim reading, with mental health issues carrying serious personal and business risks. According to research from Astutis, over half of employees are making mistakes in the workplace because of stress, while over a quarter have missed a deadline and a third have clashed with a colleague at work for the same reason. Overall, almost a million workers have experienced work-related stress, depression or anxiety in the last year.

Among the leasing causes of workplace stress, for employees from top to bottom, are cyber threats and data breaches, rising energy and fuel costs and supply chain disruption, while late payment issues, legal problems, labour costs and tax rises are also key worries for small business owners and staff.

Given the role that small business play in the economy, it is essential that these firms are able to efficiently engage with workplace wellbeing and have the systems and structures in place relating to employee mental health. Notably, the call to treat mental health as workplace issue is growing louder and the trend toward offering wellbeing plans and policies is advancing. However, at the same time, it is clear that small firms could be doing more.

How alternative lenders can help fund workplace wellbeing investment

What is holding small businesses back when it comes to investing in workplace wellbeing? Cost. Margins are tight and cash flow is under pressure, which leaves little room for finding money for investment, no matter how essential it is. At the same time, accessing finance is difficult, with traditional banks remaining cautious with regard to small firm lending.

This is where alternative lenders can help.

Small business lending from legacy sources remains difficult in Q2, with almost 40% of firms are finding accessing affordable finance one of their biggest challenges. Notably, there has been a call for the introduction of legislation that would require banks to increase access to low-cost lending for small businesses.

In response, alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, by offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Small firm finance options for investing in workplace wellbeing

Investing in workplace wellbeing is very challenging in the current climate, but such are the personal and business risks that firms have to find a way. Without key people, or with stress forcing significant errors or bad decisions, the pressure on small firms will only grow.

This is why, with traditional banks taking a cautious stance over small business lending, 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 Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk

The latest government attempt to tackle late payment is certainly grabbing the headlines – there has been lots of coverage of how tough the new measures are and the impact that they are going to have. However, some business owners aren’t convinced it will solve the problem.

How late payment is hurting small businesses and the economy

What is not in doubt is the damage inflicted by late payment. There are plenty of figures to cite and they all tell the same story. According to Creditsafe, the number of overdue invoices jumped by 3% for Q1 to almost 17.5 million, with a staggering 1.5 million businesses dealing with outstanding payment. Tellingly, the study also showed a 9% increase in insolvencies compared to Q4 2025.

As for the costs involved, according to Bibby Financial Services, on average, SMEs are owed £66,770 in overdue invoices, a 10% rise compared to last year, while almost a third have written off nearly £30,000 as a result of failure to pay invoices or insolvency. FSB research paints an even starker picture, with the organisations claiming that late payment costs the economy £11 billion per year, with almost 70% of firms struggling with invoice payment delays in Q1.

This is what the government reform package is aimed at changing, but for small business owners, the proof will be in the pudding, not least as previous initiatives have had little meaningful impact. Notably, there is concern over the impact of reform on key business relationships and, indeed, what the reform will look like once they’ve been through the House of Lords, with many fearing the watering down of measures.

How alternative finance can help protect against late payment shocks

Scepticism from the small business sector regarding the latest late payment reforms is understandable given how past efforts have fallen flat. The nature and scope of the measures are grounds for optimism, but owners won’t pinning all their hopes on the new law, especially with any impact, should it arrive, unlikely to be seen before 2027.

Interestingly, it has been suggested that businesses should get ahead of the legislation by implementing some of the measures before the law is officially passed, such as with regard to charging interest on late payments. It will interesting to see how far this goes.

But what if firm don’t fancy being so bold? What else can owners do to protect cashflow and their businesses from late payment? This is where alternative finance can help.

In response to this squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

In particular in relation to late payment, invoice finance is allowing businesses to secure capital without putting key business relationships at risk. As much as 90% of an approved invoice can be advanced by a finance provider, with the remainder settled by the client.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including invoice finance, and there has been recent calls for the initiative to be expanded significantly to help smaller businesses struggling to access finance. Such development offers further proof that alternative lenders are increasing filling the small business funding gap.

Small firm finance options for managing late payment pain

Given the upward pressure on fuel and energy prices, and the likelihood of a knock-on effect on other costs, finding a solution to late payment has rarely been so pressing for small businesses. The government’s reform package is a positive move, but scepticism remains around it, with the timeline for any roll out still unclear.

This is why it is imperative that key decision makers are aware of all the solutions for managing late payment, including the role invoice finance can play in dealing with the practice.

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

According to new research from Novuna Business Finance, seven years after net zero targets were announced, over a third of manufacturing SMEs are carrying out sustainability-related activities on a daily basis. Over 20% revealed that sustainability is more strategically integrated into their business culture.

This is a significant amount of SMEs, and the rising level of action is a positive, but the numbers aren’t quite as impressive as they might seem at first glance. There are clearly still many SME manufacturers that could do more to target sustainability objectives, in particular as 96% of these firms said that sustainability is more important to their business than 12 months ago.

Sustainability reporting: why smaller firm investment is critical

The pressure is building for small businesses not just in terms of their use of electric vehicles, smart lighting or green power, or their elimination of single-use plastics or promotion of paperless administration and communication, etc. The need for these firms to engage with sustainability reporting continues to grow.

While such reporting is still voluntary for small businesses, for the many that are part of a supply chain linked a large company client, the trend towards disclosing climate-related risks, governance, strategy and performance is clear.

The scrutiny of large company sustainability practices is growing, with the government introducing its UK Sustainability Reporting Standards, and this means more and more will be asked of smaller firms in the supply chain in terms of sustainability reporting. And if they can’t produce this information, their place in the chain is at risk.

How alternative lenders can help fund sustainability investment

Why aren’t small businesses embracing sustainability at a faster rate, in particular as awareness is at a high level? According to the Novuna research, cost is the major barrier, with 78% of SME manufacturers citing operational and market pressures as a key challenge, while a further 42% point to wider economic and political uncertainty.

It is a familiar picture: development is important and investment is required, but the environment in which this must be achieved is a highly challenging one, not least as traditional banks remain cautious with regard to small business lending. How can firms access the finance they need?

This is where alternative lenders can help.

Small business lending from legacy sources remains difficult in Q2, with almost 40% of firms are finding accessing affordable finance one of their biggest challenges. Notably, there has been a call for the introduction of legislation that would require banks to increase access to low-cost lending for small businesses.

In response, alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, by offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Smaller business finance options for sustainability investment

If the pace of sustainable activity adoption is going to accelerate among small businesses, and if they are going to be meet the coming demand for greater sustainability reporting, it is essential that these firms increase investment. However, accessing finance remain problematic, not least from traditional lenders.

This is why it is important that going into the second half of the year 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 Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk