Research carried out by American Express has found that, as access to finance becomes ‘increasingly difficult to secure’, UK small and medium-sized enterprises (SMEs) are ‘exploring new sources of finance’ instead.
According to the research, almost one third of UK SMEs find it ‘difficult’ to access finance. As a result, many are shunning traditional finance options, such as bank loans, and are turning to non-traditional forms of finance.
The research also suggested that SMEs prioritise ease of access and flexibility when it comes to choosing finance.
Paul Abbott, Chief Commercial Officer at American Express, said: ‘UK SMEs are confident they can continue to prosper, despite political and regulatory change, economic uncertainty and data security concerns, and they are prioritising several initiatives to insulate themselves from external pressures and accelerate their growth.
‘SMEs are the lifeblood of the UK economy – and it is vital that they have access to the finance they need to survive and thrive.
‘By exploring more flexible forms of finance that will allow them to remain nimble in the face of uncertainty, SMEs will stand the best chance of weathering the current climate.’