Member Article

SME funding out there if you know where to look, says East Yorkshire accountants

East Yorkshire-based 360 Chartered Accountants is urging SMEs in need of funding to educate themselves on alternative sources of capital.

According to 360, as the economy improves there are more alternative lenders coming into the market if busineses are originally turned down by the bank.

Options available via alternative lenders include:

• Business to business lending through industry peers,
• Business angels - high net worth individuals,
• Local authority lending, local business development funding,
• Government and European loans i.e. Finance Yorkshire and crowd funding, which is lending by a collection of individuals at varying rates.

Traditional bank lending has tighter criteria when considering a business loan such as having a good business plan, a solid track record and certain guarantees.

Andy Steele, Director, 360 Chartered Accountants, said: “A lot of businesses haven’t grown or moved forward over the past few years due to banks increasing their protection schemes in light of the credit crunch.

“They often require precautions, such as personal or property guarantees, before agreeing to back a business.

“This makes it especially difficult for people starting up their first company, or those working in high risk industries like property developing, despite having a solid business plan in place.

“Alternative lending sources may be a slightly more expensive form of funding but we want businesses to know that there are other options available – it is just about knowing where to look for it.

“We can help those who have been turned down by the bank and those who are unsure which investor to use.”

This was posted in Bdaily's Members' News section by Clare Burnett .