Read the latest news about alternative business finance.
Experts have warned that yesterday’s interest rate rise could create small business finance problems for many UK entrepreneurs.
Since the Brexit vote, record numbers of independent firms are struggling with their business finances. Almost half a million UK companies are currently in significant financial distress, an increase of more than a quarter in just twelve months.
Business rescue and recovery specialists, Begbies Traynor, have predicted that the number of entrepreneurs struggling with their small business finances could increase further following the interest rate rise.
They claim that up to 250,000 UK businesses can be classed as ‘Zombie’ firms; meaning that they are unable to access the capital that they need grow.
The number of businesses in significant financial distress increased in every region and sector over the last twelve months. Sectors with the highest number of companies with small business finance issues were support services, construction and retail.
Small business finances may also be affected by decreased consumer spending. In recent years, UK shoppers have increased their spend on credit cards, due to rising prices and low wages.
Julie Palmer, partner at Begbies Traynor, believes that yesterday’s announcement could lead to a negative change:
“My biggest concern is on the UK’s ever-expanding consumer-credit bubble, which could burst at any minute, knocking the consumer industries and financial sector for six. The knock-on effect for many struggling businesses with high levels of debt could be severe.””
Companies experiencing this knock-on effect now have a number of alternative small business finance options available to them. Business cash advances are a flexible way to raise funding in a short space of time. With a simple telephone application process, you can receive the funds you need to grow your business in as little as 72 hours.
To find out how a cash advance could give your small business finances a boost, speak to one of our friendly advisors today.