Over a third of UK small businesses are attempting to raise growth finance
Companies in leisure & hospitality and service sectors are making the largest funding requests, despite concerns over cash flow and late payments
Over a third (36%) of small and medium sized enterprises in the UK are trying to secure funding in order to fuel expansion and growth, according to data from online lending platform Fundbird.
In spite of recent concerns raised over the impact of late payments on small business growth, only 21% of the 1000 businesses surveyed cited cash flow problems as the reason for seeking investment.
This was followed by looking to purchase inventory and assets (15%), seeking working capital (11%) and needing funding to refinance debts (4%).
The study found that e-commerce businesses tended to seek the lowest amount of external funding; £10,001 – £25,000, followed by retailers; £25,001 to £50,000.
Companies in the leisure & hospitality and business services sectors have the largest funding requests – ranging from £50,001 to £150,000.
Sharon Argov, CEO and co-founder of Fundbird, commented: “It’s encouraging to see that Britain’s businesses are looking for funding from alternative lenders for positive reasons, both in London and beyond.
“Our data suggests that British small businesses are optimistic about their future despite repetitive headlines around cash flow, invoicing and late payments. With so much appetite for finance to boost and fulfil growth ambitions, it’s vital that businesses make a careful assessment of the type of funding that is best suited to their business needs and circumstances.”