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Entrepreneur Funding

UK entrepreneurs are anticipating business funding to be hard to come by in 2012. In a recent survey conducted by Investec, many had low confidence in the availability of funding, and believed boosting investment into their business would be tricky.


Almost a quarter of entrepreneurs that were interviewed predicted it would be ‘very hard’ to secure capital, with less than 10% believing it would be ‘easy’. The survey focused on some of the country’s most successful entrepreneurs, with businesses averaging around £42 million turnover a year. This does not therefore paint an encouraging picture of the business funding environment in the UK.

This class of business has a key role in helping the UK economy to grow and recover. With figures due to be released showing an anticipated second quarter of negative growth , boosting funding and investment in the sector is all important. Despite government efforts to make more funding options available, there is still a lack of transparency and accessibility when it comes to business funding.

Raising capital from third parties seems to be a concern for many businesses. Many plan to use retained earnings or cost savings to fund growth plans, but this is far from ideal.  87% of businesses that were interviewed planned to use this method of funding, making it an option the overwhelming majority are relying upon.

Other Finance Options

Many also plan to make use of alternative funding options. Invoice discounting and asset based lending is likely to be used by 39% of those interviewed, showing it will play a key role in reinvigorating their business plans.

Invoice finance can also be used by smaller companies, as a way to boost cash flow and release funds tied up in unpaid invoices. With many businesses looking for ways to cut costs, this is a good option for funding to explore. With minimum fees and paper work, funding can be cost effective as well as secure and fast.

By expanding your business’ funding options, it’s possible to boost your cash flow and grow your business.


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