Reading this morning’s CityAM, there were some interesting words by Mike Francis, about small business finance. There were some areas which clearly resonated with us. In particular:
“Too many small businesses see their expansion plans quashed by a lack fo finance. Their bank doesn’t have the confidence to lend them the money they need, so business owners end up trying to fund their companies’ growth on overdrafts and credit cards… There is another option they could consider, if they knew about it”.
He then goes on to explain about the merits of Asset Finance, something which we covered recently.
That last point he raises is key. There are many options available to small business owners, in terms of raising finance. The difficulty is knowing what is available. Whether that might be Asset Finance, or another method, will depend on the type of business, and areas of growth. Whereas the business owner might not have the knowledge or the access to the various different types of lender, that is where a broker can come in, understand the client’s business, and source the right finance for them.
As Mike goes on to confirm: “Small businesses will foten access asset finance though an intermdiatery such as a broker. The broker will identify the most suitable funder from their panel to provide the loan”