Liberis joins AlternativeBusinessFunding.co.uk
We’re pleased to announced today that we’ve become the first revenue-based funder to join the finance portal alternativebusinessfunding.co.uk – a new, and increasingly popular, portal for small and medium sized business looking for non-bank funding solutions. Our business cash advance product adds another valuable and unique funding source to the portal, especially for micro and smaller businesses that need flexible finance to fit their business.
Today, we’re also waiting in anticipation for the Queens’ Speech tomorrow. It’s been widely speculated that it will include an announcement which could compel banks to refer SMEs they have rejected for loans to alternative funding options.
Here at Liberis, we really hope it does, because our latest research shows that being turned down for bank funding has a very detrimental impact on smaller businesses, especially micro businesses of 1-9 employees.
Our survey showed that almost a third of micro businesses are turned down for bank funding – causing cashflow problems and missed business opportunities. And, nearly two thirds are less likely to seek alternative funding sources than larger SMEs, mainly because they don’t know where to look.
The portal is a hugely useful resource for small and medium sized companies looking for alternative funding options suitable for their business, through its free, simple to use funding traffic-light system. Since launching in March, it’s already helped thousands of businesses.
Here are some more interesting findings about micro businesses around funding, what worries them most and some impacts of running a micro business from our survey:
Two thirds (66 per cent) of micro business required less than £10,000.
Nearly half of micro businesses (49 per cent) wanted funding for cash flow, 46 per cent required it for growth/business development and nearly a quarter needed funding for new stock.
Almost three quarters of respondents from micro-businesses (70 per cent) said that being turned down for bank funding increased stress, with a fifth reporting a negative impact on their health.
Over a third (40 per cent) of micro-businesses say that cash flow management is their biggest business worry.
36 per cent of micro-business respondents had sacrificed personal savings for their business, 37 per cent family holidays, and 35 per cent quality evening or weekend time with their families.