Experts Call On Smaller Firms To Consider Options Including Alternative Finance

By Rob Dixon

Business finance experts have welcomed new figures highlighting an increase in lending to small and medium-sized enterprises, but urged companies to ensure they place themselves in a strong position by considering all of the options available to them.

New research by the National Association of Commercial Finance Brokers (NACFB) has revealed lending has reached £10.5 billion in 2013, which marks a 17 per cent increase from figures from 12 months earlier.

According to Business Insider, the study also revealed that buy-to-let accounted for the majority of lending across the year, just ahead of leasing and asset finance.

Irwin Mitchell’s banking legal specialists provide advice to businesses, including SMEs and entrepreneurs, on their needs and the options available to them when it comes to finance.

Andrew Watson, an expert in banking and finance at the national law firm, said: “These figures showing an increase in lending are very positive and yet another indicator that the economy appears to be turning a corner, which in turn is leading to growing confidence among businesses of all sizes.

“However, these changing times mean that SMEs in a stable position with a strong eye on growth should carefully assess the finance options which are available to them, with alternative options such as asset based lending, peer-to-peer schemes and invoice finances offering potential avenues they may not have previously considered.

“For many, it is a time to leave behind the ‘survival’ attitude they have been adopting in recent years to ensure they think about all of their options and put themselves ahead of the competition by doing so.”

Read more about Irwin Mitchell's expertise in relation to SMEs and Banking and Finance