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The Financial Markets Effect on Small and Medium Enterprises (SMEs)

finance, loan, grant, business, company

There has never been so many choices for SMEs, yet many are unaware of their financial options and go directly to their bank for their loan.


The Organization for Economic Cooperation and Development has recently highlighted the need for SMEs to expand sources of finance available to them in good economic times to avoid volatility and vulnerability; rather than wait until periods of market uncertainty to apply for loans.


With many customers, complacency sets in and businesses rely on overdraft facilities. During the credit crisis this was the first area banks pulled back from providing, even reducing or rescinding overdraft facilities at short notice.


For this reason, small and medium enterprises should ensure they protect themselves by having a range of short, medium and long-term financing options available to them (such as overdrafts, asset loans and longer term loans) providing more financial stability.


This is where we can help.


An internal poll of British Chamber of Commerce members found “little understanding” of alternative finance options and a survey of Institute of Directors members found 7% saw options like peer to peer platforms as important to funding their business.


Many company founders are confused not only by alternative finance but also the number of lenders, choice of product and complexity of what the product needs to provide their business.


If you need help, advice or assistance contact our team on 01303 230453 today. Or email