"Such a large number of businesses seeking more than £1.1 million in funding shows that businesses want to seize control of their financial futures."
27% of UK businesses expect double digit growth in 2019 despite concerns about the impact of Brexit, according to research by Independent Growth Finance.
Despite ongoing economic uncertainty, its report found that British businesses turning over between £1 million and £500 million remain ‘bullish’ about the future.
Nine in ten company leaders have concerns over Brexit, but 69% still expect an increase in revenues.
As a result, 71% of businesses are seeking new funding over the next 12 months - more than £1.1 million, on average - to finance key areas of investment including technology (37%), staff retention (30%) and marketing (27%).
However, boardrooms across the country understand that financial backers become increasingly cautious during uncertain times. Over half (53%) of businesses had to wait at least a month for a funding decision in 2018, while 31% waited three months or more.
IGF warns that in an environment where the inability to forecast is among the top Brexit challenges (27%), slow funding could cause irreparable damage to businesses.
As a result, IGF’s research finds that alternative finance is on the rise. While traditional bank funding remains the top source (67%) more than a quarter (27%) now use invoice financing and one in five (22%) opt for asset based lending.
John Onslow, CEO of Independent Growth Finance, commented: “British SMEs are the lifeblood of this country. It is encouraging to hear how many are forecasting meaningful growth in 2019. Such a large number of businesses seeking more than £1.1 million in funding shows that businesses want to seize control of their financial futures.
"Yet our findings suggest many struggle to find quick and flexible funding. With uncertainty on the horizon SMEs are refusing to stand still. Instead they are pushing for ambitious growth and alternative funding solutions.”