Why is the demand for finance among SMEs on the rise?

After more than 100 delegates were questioned at the recent Funding Conference in Belfast earlier this week, it seems that SMEs in the UK are requiring finance support.

A staggering 80% of participants said they felt the need for business finance was dramatically increasing among SMEs, while 66% said the supply of finance to local firms were increasing.

The event, which was organised by Chartered Accountants Ulster Society, found that 9 in 10 business people had no idea about other funding streams, aside from the more traditional banking options – this also included the likes of venture capital and crowd funding.

With plenty of options available, SMEs should contact UK insolvency practitioners for guidance with their finance.

Meanwhile, the event also found that 82% of those questioned, said they believe Britain should remain within the EU.

When quizzed on corporation tax, two thirds felt it would make a “significant” positive difference to their business, while 25% said it would make a “marginal” difference.

Patrick Gallen, Chairman of Chartered Accountants Ulster Society, spoke at the event and explained he was pleased that the overall response from business owners has been that funding has improved over the past year.

While the economic recovery still has a way to go, business finance has a pivotal role to play in business growth, he added,

The funding landscape is “particularly dynamic” and fast developing at this moment in time, but a number of SMEs feel the awareness of alternative funding methods is quite low, Mr Gallen explained.

The aim is now to provide a clear picture of the current funding landscape and to provide the support needed to local firms trying to find the cash they need to further grow, he said.

Kevin Kingston, Deputy Chief Executive at Danske Bank, said the funding landscape has improved over the past 12-18 months.

Meanwhile, business confidence has also improved simultaneously so there is now the capacity to build stronger financial structures for those businesses that have the ambition and desire to progress, he added.

Mr Kingston concluded that with the number of SMEs set to expand and become global leaders, financial support is a must.

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