Connectivity has never been so critical for SMEs but getting the right broadband technology and services comes at a cost, in particular if your business is not based in an urban area. Alternative finance can help firms raise the investment capital they need.

A new report by the Commons environment, food and rural affairs select committee has highlighted the level of broadband inequality in the UK. Although the primary focus of the report is rural households, the findings are just as important for rural businesses.

According to the report, rural inhabitants are at risk of becoming second-class citizens as a result of poor broadband and mobile services at a time when people living in urban areas are benefiting from next-generation broadband and 5G mobile. The publication spells out the disadvantages for households and at the same time, the implications for small businesses are clear.

Digitalisation is revolutionising how we live and how we do business: connectivity is key. But without ready access to fast broadband services, small firms are hamstrung. Day-to-day business is more challenging, key contracts are more difficult to win, operating costs are higher and growth targets are harder to achieve.

The importance of fast broadband services needs little further explanation, but getting the right coverage and connectivity is not always straightforward and can have a significant price tag, wherever your business is based. So, at a time when small businesses are facing a blizzard of policy and non-policy-related costs, how can they afford the essential broadband services they need?

Alternative finance can help.

In the wake of prolonged caution from traditional lenders, a position that Brexit is helping to entrench, alternative finance facilities such as invoice finance, asset finance, peer-to-peer lending and crowdfunding are proving a vital source of capital for small businesses, both for safeguarding cashflow and for essential investment, including in fast broadband services.

This is how a small business in Sussex used peer-to-peer lending, through a commercial finance broker that specialises in alternative finance, to raise the capital to invest in new equipment.

In today’s increasingly hyper-digitalised marketplace, connectivity is vital. However, the costs of fast broadband services are a challenge for small business. That’s why, to get the service they need, business owners need to be aware of all the funding options available to them, including alternative finance.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.