These are uncertain times for SMEs, not least because of the EU referendum. Confidence is being questioned at the same time as new growth is being talked up. SMEs need stability and this is what alternative finance offers.

The new Close Brothers Business Barometer claims that 80% of SMEs are unsure about the country’s economic prospects and that almost a third think the return to prosperity will take a long time to achieve. According to the report, a number of issues are behind these worries, including the EU referendum and costs relating to the national minimum wage, new tax rules and pension auto-enrolment.

However, at the same time, a new study from eBay shows that two-thirds of UK SMEs are planning to increase investment in the next year. According to the study from the online trading platform, marketing, product offer and customer service will be key areas of spending in 2016-17.

The contrasting sentiments described by these new studies neatly illustrate the uncertainty that currently characterizes the UK SME sector. So, how can these businesses achieve greater stability? One answer to this question is a solid financial platform.

Given the market conditions, a sensible and coherent financial strategy is a must – this platform will help businesses manage the pressures on their cashflow and capital and put them in a position to prosper once the issues mentioned above are resolved or clearer – and alternative finance has to play a key role.

While traditional lenders are slowly moving away from the cautiousness that has characterized their attitude to SMEs since the recession, services such as invoice finance, asset finance and peer-to-peer lending offer these businesses the flexibility, accessibility and affordability that they are struggling to find elsewhere.

At a critical time, both for SMEs and the national economy, alternative finance offers a means of achieving the stability needed to maintain momentum and plan for future growth.

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