As 2021 enters its last weeks and small firms once again feel the effects of COVID-19, it is clear that technology will continue to play a vital role in business development in 2022. The big question is, how can they afford it?

Technology has been key to surviving the pandemic for small businesses of all shapes and size. New research from Dropbox and Enterprise Nation shows that almost three quarters of firms couldn’t have kept going without it. Key tech trends have been accelerated and widely adopted and events in 2021 have underlined just how critical digital optimisation is.

Arguably, there is no more important time for small businesses to be benefiting from all the advantages that technology offers, whether its e-commerce capability or supply chain digitalisation, than in the run up to Christmas. A lot of money is spent at this time of year.

However, some small firms are lagging behind – using old processes and relying on legacy technology. This puts them at a clear disadvantage and makes them more vulnerable to the uncertain market conditions that continue to dog the economy.

The main barrier to tech investment and what firms can do

What’s stopping firms from investing and optimising operations and systems? The three obstacles identified by the Dropbox and Enterprise Nation study are knowledge, money and time.

And all three factors can be linked back to affordability. Building knowledge and spending time both require financial investment, as does purchasing software and hardware, and at a time when small businesses reman under tremendous pressure, finding and allocating funding is far from straightforward.

So, how can small businesses invest in vital tech and manage the impact on cash flow and capital reserves?

Alternative finance can help.

Business tech investment and how alternative finance can help

With regard to alternative finance, in the wake of prolonged caution from traditional lenders, which is an issue that has returned during the pandemic, services such as invoice finance, asset finance and peer-to-peer lending, are proving a vital source of capital for small businesses, both for maintaining cashflow and for essential investment.

These facilities, which offer a more easily accessible and personalised approach to lending, are helping small businesses survive and target recovery and regrowth.

Furthermore, alternative lending is playing a prominent role in the government’s headline emergency support scheme, the Recovery Loan Scheme (open now until the end of June 2022). Invoice finance and asset finance between £1,000 and £10 million per business are available under the initiative. This profile is helping cement the reputation of alternative finance in the business sector.

Investing in critical tech and SME finance options

Planning ahead in 2022 looks set to be as challenging as it has been in 2021, but it is clear that investment in technology is important. For many firms, it is vital to survival and there is a little to suggest that this will change going forward. As such, it is essential that business owners are aware of all the finance options available to them, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.