May 23rd, 2019.

Philip Belamant explains the difference between loans and equity, and why specialist lenders who forward fund specific costs such as ad spend provide an alternative.

A huge 99.9pc of the UK’s 5.7 million private sector businesses are SMEs, making them crucial for a healthy economy and jobs market. But the failure rate of SMEs is staggering, with less than half surviving beyond the first five years. Maintaining operating cash flow is a massive cause of business failure because of the way business lending for SME finance is assessed.

Funding is a major barrier to SME growth, with more than half of SMEs struggling to get the funding they need to help boost productivity develop their product offerings and scale as a business, according to Close Brothers. What are the best business bank accounts in the UK?

Often, many resort to selling stakes of equity to secure the much-needed cash that could take their business to the next level.

Difficulties SMEs face getting funding
Small businesses often struggle to get funding as they are deemed too much of a risk and are not making enough turnover to convince prospective lenders.

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