Do SMEs really need to worry post-Brexit?
There is a lot of concern in the media around the health of the UK’s SMEs post-Brexit. Research from the Smith & Williamson Enterprise Index states that confidence among SMEs in their own prospects for the year ahead has dropped by 27% since the vote to leave was announced. Economic uncertainty is largely to blame for such pessimism however, the full impact of Brexit still remains to be seen, which begs the question - has anything really changed?
“In our view businesses are getting on with work as usual”, says Nucleus Sales Director, Dennis Pym. “Those that need financial assistance are requesting it, and those that don’t, aren’t. We haven’t seen any marked change in any organisation’s financial strategy so far.”
Many banks though, already known for their inflexible payment terms and lengthy application processes, are fastening their belts even tighter when it comes to providing financial assistance. Recent survey results indicate that awareness of alternative types of finance is still incredibly low with conventional loans and overdraft facilities getting 92.8% of the attention. However, this may soon change as SMEs find it even harder to qualify for business critical funding from traditional financial institutions.
“We are aware of certain advances being declined on the back of Brexit” continues Pym. “If anything, this time of change will push SMEs to look beyond traditional channels to secure funding. For alternative providers, it’s an opportunity to step in and help these businesses achieve their growth targets with competitive financial solutions.”
Rather than feel concern for their futures, SMEs need to investigate all their financial options now and not only rely on banks for the funding they need. The sooner they establish their growth strategies, the better prepared they’ll be for what lies ahead – Brexit related or not.