Alternative Finance reigns top choice for second consecutive quarter
80% of UK businesses turning to the accessibility and flexibility of alternative finance to fund key investments
New data from AIM-listed alternative finance provider, Time Finance, has shown that alternative finance is ranked the highest amongst funding solutions as businesses seek investment in future growth as the Government’s pandemic support draws to a close.
Time Finance’s latest survey showed that 80% of businesses plan to use alternative finance through a financial intermediary to make key investments, climbing from 44% in the business’ previous survey in July 2021.
Ed Rimmer, Chief Executive Officer at Time Finance, commented: “Our most recent survey has confirmed what we have predicted for some time now; investment for growth is very much at the forefront for UK businesses and they are seeking reliable, trustworthy and accessible lenders to which they can turn as the Government ends its various pandemic relief funding and support packages.”
Business respondents identified new personnel (35%) and new equipment (33%) as their top areas of investment. Financial intermediaries also stated 80% of their clients intend to use alternative finance to fund team and equipment investments. 92% said they would be making these investments in the next six months.
Ed continued: “In our July survey, we found that just 28% of intermediaries anticipated that their clients planned to invest in new personnel. Three months later this has climbed to 80%. That is a huge indicator of renewed business confidence and mirrors the recent reports from the Insolvency Service that August saw the lowest figure for proposed job cuts for seven years despite the imminent end to Furlough. From our survey we can see that investments in new personnel are an immediate priority for businesses and this gives us an important barometer not just for business confidence, but for increased employment opportunities as we emerge from the challenges of the pandemic.”
The latest survey from Time Finance paints a picture of optimism, echoing data from the Office of National Statistics (ONS)*, which in July reported 85% of businesses are confident of survival. This was further reported in August with Lloyds Banking Group reporting that business confidence is at its highest level since 2017.
Ed added: “It is extremely encouraging to see all signs pointing in the right direction; optimism is a true catalyst to growth and if harnessed in the right way, this will give a significant boost to our economic recovery. We at Time Finance know that we have an important role to play in unlocking businesses’ potential and we have spent many months preparing our business for the increased demand that is now materialising.”
The new survey data from Time Finance closely follows the appointment of Sharon Bryden as Director of Commercial Loans and Asset Based Lending, the latest in a line of key appointments that has seen the business bolster its portfolio of funding solutions.
Sharon comments: “I have joined Time Finance at a critical time. UK businesses need robust and reliable finance but more than this they require this funding to offer diverse solutions. Time Finance is known for its varied portfolio of funding solutions, which can be accessed in tandem through our multi-product solution. Time Finance listens to its market and responds with investments in its team and its technology to aid the fast delivery of funding to businesses. Our recent survey shows that the demand is profound and we are more than ready to support those that need us.”
Time Finance offers a range of alternative finance solutions, including Asset Finance, Invoice Finance, Loans and Vehicle Finance, providing a suite of complementary solutions should businesses require a multi-product approach through Asset-Based Lending. In June this year, Time Finance also became an accredited lender under the Government’s Recovery Loan Scheme via the British Business Bank.
*Office of National Statistics, Business Confidence Data, 25th July