There are 5.7 million private sector businesses in the UK, up from 5.2m in 2014. Staggeringly more than 99% of them are classed as SMEs, small and medium sized enterprises, businesses with under 250 employees. This means the success of this sector is critical to a healthy economy and jobs market. The problem is that the failure rate of SMEs remains worryingly high, with less than half still in business after five years. Maintaining operating cash flow is one of the primary causes of business failure, and the way business finance lending for a SME is assessed can be critical.
According to recent Close Brothers analysis, more than half of SMEs struggle to get the funding they need to help boost productivity develop their product offerings and scale as a business.
They are deemed too much of a risk and are often don’t have the size of turnover to convince prospective lenders. Many banks require businesses to have strong personal and business credit scores— and the latter may not be something an SME will have if they haven’t taken out a business loan in the past, or if they have existing debt from other lenders.
Banks may also demand a track record of generating profits over a specific time period as proof of success and credibility to be able to offer finance.
All in all, the cards are stacked against SMEs who need funding capital to grow. This is where Credo comes in..
We have helped thousands of small businesses to expand, whether it is through financing their first van which turns into a fleet as the business grows, or creating a cash flow release through asset refinance to give your business the operating funds it needs. Credo are specialists in finding the right solution, allowing SMEs to concentrate on their own business and fulfil their real potential.
Specifically, to help small businesses to grow, we have also developed a finance option through our sister company Credo Capital Finance, allowing us to bypass traditional lenders and lend money from our own business funds.
What does this mean? It means that we deal with each case on its merit, we get to know you, find out the circumstances and of course, ask all the mandatory questions. And if we see the potential in your business, we’ll use our own funds to support you to grow.
So, if you are in business, are thinking of making a major purchase or even just interested in how you could create a better cashflow, why not give us a call?