The election is done, the new government is in place. Now, are small businesses going to get the reforms they want? And if these changes happen, how are they going to be able to invest in new opportunities?

The list of reforms that small businesses wants from the new Labour government is not short, but there is optimism in the sector that the look and pace of development will be positive. Early news suggests that this confidence won’t be misplaced.

What are the headline reforms that small businesses are expecting?

Headline reforms for small businesses include reducing the tax burden, including in relation to business rates and personal tax allowances, and rising the VAT threshold. There are also calls to provide help with energy bills and the adoption of greener workplace practices, both in terms of guidance and financial assistance.

Then there’s the billion-pound late payment issue that desperately needs addressing, and the future of the high-street – from getting shoppers back to getting banks more interested in small business lending. In addition, firms want to see a greater prioritisation of workplace wellbeing and staff mental health.

There’s plenty to keep the new government busy and there is widespread expectation that change needs to happen quickly. All eyes are on No.10, not least as a lot of promises have been made, including in relation to fairer business rates, more stability and certainty around taxation, infrastructure development and greater investment.

Investing in business growth and how alternative lenders can help

It’s very early days, but there are signs that small businesses may have some of their wishes granted. The British Business Bank has announced the launch of the Growth Guarantee Scheme, which is designed to help smaller firms access finance as they target investment and growth. It is expected to support around 11,000 firms over a two-year period.

So, if more support is provided and economic conditions improve, the next question is “how can small businesses afford to invest?” Despite all the upbeat talk, the market remains hugely challenging after years of adverse events and financial mismanagement. Funding growth while safeguarding cash flow will not be an easy balance to strike.

This where alternative finance can help.

Services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate (with 65% more SMEs experiencing difficulty in accessing finance from high-street banks). These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

This profile has helped cement the reputation of alternative finance in the business sector. Notably, the new Growth Guarantee Scheme will provide a wide range of finance facilities to smaller firms, including asset finance, invoice finance and asset-based lending. This is further proof that alternative lenders are increasing filling the small business funding gap.

Small firm finance options for new investment in 2024

Time will tell if the pledge and promises turn into bona-fide reform and change. Small businesses need little reminding of the difference between rhetoric and reality. But, whatever happens and at what pace, firms need to be able to invest if they are to take opportunities and grow – and this means access to finance. This is why it is important that owners and directors 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.