Post Brexit, a new survey has shown a fresh fall in SME confidence, but at the same time, the British Business Bank has reported a surge in small business lending and a revolutionary new lending organisation has secured key funding.

The new Smith & Williamson Enterprise Index claims that small business confidence has declined sharply in the second quarter – only a quarter of small business owners expect the economy to improve over the next year, a fall of over 30% compared with the first three months of the year. The uncertainty that characterised the months leading up to the EU referendum and the immediate fallout from the vote have played a key part in the deepening malaise according to the Index.

However, the news is far from bad for SMEs. The British Business Bank has reported £527 million in small business lending over the last year, with the organisation increasing finance to small companies by 45% in 2015. It has increased the number of partners that it works with to supply finance by nine to 90 in total over the same period. Notably, the Bank has integrated alternative finance in its funding framework.

Another organisation offering small businesses an alternative to traditional lending service is the revolutionary mobile-first bank Tide, which has announced securing £2 million in s­eed funding. The news comes shortly after the Asset Based Finance Association has announced a record level of invoice finance use by businesses in the UK and Ireland.

This news comes as StartUp Britain has suggested that the number of new companies set up in the UK could smash the 600,000 barrier in 2016 and the beat the total recorded for 2015, at 581,000. So far this year, 343,000 firms have been established in the country.

Looking ahead, it seems clear that alternative finance and non-traditional lenders have a key role to play in driving SME sector and wider economic growth in an uncertain time.

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