One in four UK businesses expect double digit growth in 2019 despite concerns over Brexit impact
Independent Growth Finance (IGF) Powering Freedom Report finds businesses ‘bullish’ about future despite 90 percent highlighting Brexit challenge
71 percent of SMEs seeking new funding in 2019 – £1.1 million on average – to realise growth aspirations
Over half (53%) of businesses face waiting a month or more for traditional funding, as a result alternative finance on the rise
Over a quarter (27%) of business leaders are expecting revenues to grow by more than 10 percent in 2019, according to a new report by Independent Growth Finance (IGF), the leading independent asset based lender.
Despite undeniable uncertainty in the economy, IGF’s Powering Freedom Report finds that British businesses turning over between £1 million and £500 million remain ‘bullish’ about the future. Nine in ten company leaders have concerns over Brexit yet they remain optimistic about opportunities in the year ahead. In fact seven in ten (69%) companies expect an increase in revenues.
To help realise these growth aspirations 71 percent of businesses are seeking new funding over the next 12 months. More than £1.1 million, on average, to finance key areas of investment including technology (37%), staff retention (30%) and marketing (27%).
However, boardrooms across the country understand that financial backers become increasingly cautious during uncertain times. Over half (53%) of businesses already had to wait at least a month for a funding decision in 2018, while 31 percent waited three months or more. In an environment where the inability to forecast is among the top Brexit challenges (27%), slow funding could cause irreparable damage to businesses.
As a result, IGF’s research finds that alternative finance is on the rise. Many businesses are open to changing their provider to take advantage of quick and flexible decision-making. While traditional bank funding remains the top source (67%) more than a quarter (27%) now use invoice financing and one in five (22%) opt for asset based lending.
John Onslow, CEO of Independent Growth Finance, comments, “British SMEs are the lifeblood of this country. It is encouraging to hear how many are forecasting meaningful growth in 2019. Such a large number of businesses seeking more than £1.1 million in funding shows that businesses want to seize control of their financial futures. Yet our findings suggest many struggle to find quick and flexible funding.
“Too many banks say yes to funding only for it to turn into a no because the decision maker wasn’t involved from the start,” continues Onslow. “With uncertainty on the horizon SMEs are refusing to stand still. Instead they are pushing for growth and want flexible funding solutions to take control of their financial futures.”
You can download the full Powering Freedom Report here www.igfgroup.com/lp/powering-freedom-report