Budget 2012: make it clear that alternative finance is viable

What everybody wants to see is a budget that delivers growth. With such a huge proportion of the UK's innovation and prosperity coming from small businesses - as much as 60% of all employment, and 50% of GDP in 2011 - the government should take measures to boost the ability of small business in all sectors to access finance.

Of particular interest to me, as the founder of an alternative funding provider, are the recommendations of the Breedon Report into this issue, which are set to be announced with the budget.

We know it's hard for very fast-growing small businesses to source working capital - we are approached every day by small firms searching for a better financing solution, other than the traditional bank products - so it's great to see the government taking the issue of alternative financing seriously.

We already provide the kind of supply chain finance that Breedon recommends, as well as a method of invoice discounting, which is simple to understand, flexible, price-effective and easy to access.

What the government really needs to overcome when implementing the Breedon report is the biggest barrier facing all alternative financing providers - awareness. New financing platforms lack the branch infrastructure to distribute their products and many owners and managers of small and medium-sized businesses simply have not discovered that alternatives and complements to traditional bank funding even exist. The government should do everything in its power to make it clear that alternative finance is a viable, workable solution for small businesses.

For more information about MarketInvoice click here, www.marketinvoice.com

Anil Stocker will be taking part in the Smarta budget webchat at 12.30 tomorrow. To find out how to get involved click here.

In association with, Intuit

intuit

We use cookies to create the most secure and effective website possible for our customers. Full details can be found here