LONDON--(BUSINESS WIRE)--Growth and funding ambitions have strengthened amongst SMEs over the course of 2019, according to the latest report by Independent Growth Finance (IGF), the leading independent asset based lender. Almost three quarters (73%) expect to see their revenues climb in the next 12 months, compared to 69 percent in January. Of those seeking to raise funds to support growth, the average amount has also increased by 22 percent – or £250,000.
IGF’s Powering Freedom Report finds that British businesses turning over between £1 million and £500 million are determined to secure a brighter future. Little has proved effective in reducing Brexit concerns amongst SMEs – up from 90% to 93% since January. Yet, new findings suggest investment is high on the agenda.
Three quarters of businesses (75%) are looking to secure funds in the next 12 months. On average, they are seeking £1.4 million – up from £1.15 million. The majority of this spending is earmarked for innovation with investment into technology (45%) and product development (27%). Similarly, retaining staff (30%) is a focus area.
To enable these plans to become a reality, however, businesses need to secure suitable funding. As such, 85% are open to switching their funding provider in exchange for more flexibility (35%), sector-specific expertise (32%) and 48-hour decision-making (26%).
John Onslow, CEO of Independent Growth Finance, comments: “It’s incredibly encouraging to see so many SMEs focused on the future. This includes a greater willingness to switch funding providers to get the flexible funding they need, when they need it. We’re not surprised our research shows three of the top five funding sources are alternative finance.
Onslow continues: “Many would have expected the bullish spirit we revealed in January’s report to have waned under Brexit-related uncertainty. Yet, what we’re actually seeing is an even more determined outlook. It’s in all our interests that SMEs have access to the right financial support to help them make it a reality.”
Download the Powering Freedom Report here.