SME optimism has been growing steadily over the last year, reaching a three-year high in 2015 according to a new survey. Invoice finance is integral to turning this confidence into real growth.

Figures from financial services data provider Kabbage show that 95% of SME owners expect to register revenue growth in 2015, with half excepting to post an increase of 20% or more. This report is the latest to show such levels of confidence – Lloyds’ latest biannual Business in Britain report put SME confidence at a 22-year high.

The next step is to turn this optimism into real growth, and other figures from the Kabbage survey underline why alternative finance has a major role to play in this. According to the report, the two leading growth issues for SMEs are accessing capital and managing cash flow.

The alternative finance sector has expanded rapidly because of its ability to enable SMEs to successfully tackle these challenges. With traditional lenders proving very slow to move away from a cautious SME lending strategy, it is clear why services such as invoice finance, peer-to-peer lending and crowdsourcing are so important to SME growth and overall economic revitalisation.

Furthermore, new data on late payment from the Federation of Small Businesses further illustrate why invoice finance is a vital SME finance product. According to the association, an estimated £40 billion is owed to small businesses as a result of late payments. The news comes at the same time as reports that Cadbury and Mars have extended their payment terms of 120 days for some suppliers.

The forecast for 2015 is encouraging and, if SME growth is to be realised, the alternative finance sector has a major part to play.

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