The beginning of the year can be a challenging time for SMEs as trade levels stabilise after the festive boom. This year, there is the extra concern of auto-enrolment requirements. Alternative finance can ease worries.

New research from the Federation of Small Businesses shows that half of SMEs are struggling with auto-enrolment, with the financial implications a major concern: according to the data, 25% of the small businesses questioned said they couldn’t afford it. With cashflow under particular pressure at this time of year, the additional needs of adding pension provision to company financial planning only adds to the strain, and this burden can stifle growth.

Alternative finance and services such as invoice finance, peer-to-peer lending and crowdfunding are a means of easing the financial pressure, and having an arrangement in place can help business owners steer company development more confidently. One of the many advantages of these services is that users don’t have to tie themselves into long-term contracts. Services can be used according to individual needs and put into action as and when required. And knowing that finances are in order provides an invaluable freedom, not least to focus on maintaining forward momentum and achieving growth.

As any small business owner will know, there are always demands on capital, whether it’s auto-enrolment or recruiting new staff, upgrading cyber security and data protection or updating systems to deal with new payment structures, such as international payments, etc. Fast-growing alternative finance (the invoice finance sector was worth £20 billion alone in 2015 according to the Asset Based Finance Association) can help provide the financial assistance that allows such demands to be taken in one’s stride.

To find out more about A&T Business Associates services, contact us on 01903 602211 or info@atbusinessassociates.co.uk.