In his latest guest blog with Time Finance, Ed Rimmer shares why he believes 2022 will be the year for big investment among British businesses:
The new year never fails to give us a fresh perspective. Whether we are resolved to put the past year’s challenges behind us or energised to achieve new ambitions in the months ahead, the start of a new year lifts the fog of December and brings business priorities into sharp focus. Investment plays a big role here and always has, but there are many indicators that 2022 will see an even greater emphasis on strategic business investment. As always, alternative finance must stay ahead of the game to ensure we provide the right funding support for businesses. Here are my predictions for the role of alternative finance in the year ahead.
The increased potential of Invoice Finance
Invoice Finance continues to be an extremely valuable means of releasing additional working capital to help a business’ cashflow and fuel investment, and appetite for this service is only set to grow. It is such a versatile funding solution that enables businesses to be nimble in how they use their capital. It can provide a buffer for short term overhead challenges or provide a means for growth whether that’s investing in new equipment, introducing new products and services onto the market, or making acquisitions.. Economically, businesses are still navigating a lot of unknowns and so they need flexibility in their funding to enable them to react quickly. Invoice Finance provides that in abundance but it also provides a funding stream that grows with a business, making it a perfect fit for businesses mapping their future ambitions.
Sustainable investment trends
COP26 succeeded in igniting a fresh urgency in the global movement against climate change. For businesses already focused on sustainability, this will have brought their attention back to ways they can further reduce their carbon footprint and for businesses yet to make any green improvements, it undoubtedly moved sustainability higher up their agenda. But regardless of where a business’ environmental credentials sit, investment in sustainability is expensive. We at Time Finance have kickstarted the year with our ‘Going Green’ survey to better understand what our clients need from us to aid their sustainability strategies. We found that 40% of businesses simply can’t afford to invest in green tech while 40% have other priorities for investment. It is the job of alternative finance to find ways to break down those barriers for businesses and provide funding solutions that turn a green wish list into an achievable investment plan.
The agility of alternative funding
Traditional lending is failing to keep up with the needs of businesses. The businesses that we work with come to us because we have multiple and flexible funding products and services that can be tailored to meet their business needs. We are not simply a pot of money handed over with conditions and a repayment plan. We work with businesses to understand their needs and develop solutions that suit their current and future objectives. In 2022, businesses will really need this. Agility, flexibility and, in many cases, speed, are what businesses require from their funding streams. This year is going to see a big shift in where businesses turn for their funding. They need funders who are easy to deal with, have a common sense approach to doing business and react quickly. This is where I truly believe our industry leads the way.