An election called to help put an end to destabilising uncertainty has done just the opposite. The result is the last thing small business owners wanted and has underlined the importance of alternative finance.

In the wake of the general election result, small business owners find themselves having to operate in a market even more hamstrung by uncertainty. Before the voting, an opaque approach to negotiating Brexit was a chief cause of market sluggishness. Now, with a huge question mark over the longevity of a minority government comprising the Tories and a deeply controversial partner, visibility is even poorer.

So, where does this leave SMEs? The uncomfortable answer is in a poor position. The election result has yielded none of the clarity that was so urgently required, and given the state of the political landscape, it is difficult to see any of the business sector’s key issues being prioritised.

Furthermore, small business owners shouldn’t expect much improvement in market conditions – indeed, the sluggishness might become something worse. So, if finance was a key issue before, it looks set to become even more critical going forward. This is why alternative finance will be so important in the coming months.

Services such as peer-to-peer lending, crowdfunding, invoice finance and asset finance are playing a key role in helping small business owners raise and safeguard capital as they come under severe pressure as a result of high business rates and financial demands relating to pension auto-enrolment, cybersecurity, living wage requirements, late payment issues and apprenticeship scheme reforms.

Maintaining cashflow in the post general election marketplace will not be any easier. In fact, it may well be tougher. What is more certain is that the climate of shock will not encourage traditional lenders to relax their position on small business lending.

Therefore, non-bank finance has a critical role to play in helping small business owners protect their firms in the face of even greater uncertainty.

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