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26 Oct 2023 / Asset Finance

Puncturing the pressure

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As the summer holiday season comes to an end and it’s strictly back-to-business, the air is filled with economic chatter. Will interest rates climb? Is inflation on the decline? Has our economy grown? Or are we headed for a recession? These questions loom large, casting a shadow of uncertainty over businesses. While staying tuned to wider economic debates is crucial, it can also stir up doubts in the minds of business owners. Our job is to provide the right solution, so that businesses’ investment plans don’t fall needlessly by the wayside.

Looking beyond traditional lending routes

In these uncertain times, the role of alternative finance has never been more important. Businesses, especially SMEs, yearn for accessible alternatives to the conservative world of traditional lending. Yet, what we can provide them now goes beyond alternatives; it's all about flexibility. Many businesses are still struggling with soaring overheads, and until inflation finds its way back to the targeted 2 or 3%, these financial pressures will only persist. So, what does that mean for a business that has ambitions to grow? Some might assume those plans should be shelved until the economy stabilises. Thankfully, with alternative finance, that isn’t the case.

Balancing the present with future ambitions

Our partners in the broker community are sounding one common message: businesses need stability. Obviously, this doesn’t mean standing still and waiting for the storm to blow over. To succeed, businesses need to keep moving forward, and so it’s our duty to equip them with the right financial tools to plan and forecast effectively… Of course, while simultaneously helping them to invest in the future.

In recent months, we’ve started to see some movement already. For example, gaining a surge in enquiries for solutions like refinancing. What this indicates is a growing demand and determination amongst businesses to unlock capital whilst leveraging the equity in their business. When it comes to alternative solutions, it offers huge potential for growth, allowing businesses to safeguard their day-to-day cashflow and channeling the equity from existing assets into their growth plans.

Finance that works for all priorities

Business priorities are changing. In asset finance for example, no longer do we constrain ourselves to just thinking about financing traditional equipment, be it large-scale machinery or IT systems. We can see that the urgency to invest sustainably is gaining momentum. But, with our own research indicating that half of businesses see sustainable investment as a key priority for this year, and yet, 40% see access to finance as their greatest barrier to investment. We know we need to make these investments more attainable.

With alternative finance by a business’ side, SMEs have the solution to strike that necessary balance between making investment plans a reality whilst protecting all-important cashflow.

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