A worrying number of SMEs think they’ll go belly up in the next five years as they struggle to cope with serious market headwinds. Alternative finance can help. Here’s how.

According to a new study by global small business platform Xero, a quarter of small business owners believe their companies will go under by 2024. The reasons for this pessimistic outlook are varied but a commonly held belief is that these various factors are combining to create an unprecedented level of market turbulence.

The survey reveals that late payments is the greatest concern for small business owners, followed by small business tax rates and the uncertainty of Brexit. Next are the value of the pound, maintaining or increasing levels of productivity, the increasing cost of importing goods and materials, and cyber-attacks and the cost of protection against them.

The latest Business Barometer from Hitachi Capital details similar findings. According to the report, three quarters of small businesses are being held back by factors that they don’t control, with market uncertainty, the weaken pound and volatile cash flow among the biggest barriers to growth.

Accessing funds to maintain cash flow and for essential investment is critical for SMEs – it can often be a matter of sinking or swimming, and current political and economic conditions are ensuring that this remains a challenge. This is where alternative finance can help.

In the wake of extended caution from traditional lenders, the likes of invoice finance, asset finance, peer-to-peer lending and crowdfunding are redrawing the small business funding landscape. These facilities, which offer a more personalised approach to lending, are helping small businesses grow. They are providing them with access to capital, on an affordable and flexible basis, to help manage cash flow and for critical investment.

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

This year has undoubtedly been another tough one for SMEs but despite the understandable pessimism, opportunities for growth and success are there to be taken. In order to be in a position to take these chances and maintain forward momentum, 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 Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.