Posts belonging to Category 'UK SME Business Funding'

UK SME seeking funding in 2009.

UK SME seeking funding in 2009.
There is a lot of talk about access to finance for small and medium sized enterprises (SMEs). There is also a lot of news of firms going bust (with the trend of business failure sharply rising in the last quarter of 2008 – a 220% increase to over 2,400 collapses).
So what is the financial landscape in the UK for SMEs in 2009?
Firstly it must be said that there is an environment of increased risk and complexity through the global economic downturn. Many dangers and traps await both SMEs and the financial institutions who offer support to them.
Key reasons why business need finance:
1.  Most common justification is to purchase assets.
o   A short-term purchase
Inventory – repaid once converted into cash (i.e. it is sold to customers).
o   Long-term purchase
Fixed assets – such as equipment.
2.       Credit.
o   Bank loan to repay other forms of borrowed money.
o   Working capital to pay suppliers more promptly to get a discount on unit price.
3.       Equity.
o   Buy a partner’s share in your business

The danger is making the right decision i.e. discerning what projects will produce a return in the current turmoil.
Funding business projects involving Innovation, New Product Development, Business growth and Entrepreneurial new ventures are need cost effective types of commercial finance.
Robert Craven, a leading expert in UK Business, suggests:
“…to see the downturn as the time to stand out from the rest by ….
Investing in:
Your people,
New products,
Business promotion and generally shout from the rooftops that you’ve never had it so good.

1)      Don’t talk your business into receivership (reducing prices may well be the first nail in your coffin) but
2)      Don’t be stupid (spending money unnecessarily).
3)      Have a systematic, structured approach to your business
4)      Realistically look at your current activities and make some sense of what is going on
Craven gives good sound advice. He possesses a keen sense of awareness of how best UK business owners and senior managers need to respond to the constantly evolving economic climate.

Business confidence is everything managing a successful business. Funding exists in many areas of the UK, and your business may qualify for funding a business consultant, like Craven.

Before deciding on seeking external advice for help you with your business, it is best to talk to various business advisers. This is precisely why Business Service Finder is being developed – an online resource – a gateway for advice and assistance for SME owners and senior managers – a forum of the latest business wisdom and a dynamic market to help you get best value.