MarketInvoice: SMBs Prefer Invoice Financing Over Business Loans For Growth

ONLY one in 10 small and medium-sized enterprises (SMEs) would use a traditional business loan to grow their business, according to research.

A survey of 1,000 business owners by MarketInvoice found that invoice-based and asset-based financing were the most popular financing avenues, cited by 26% and 22% of businesses, respectively.

The data, which is part of the peer-to-peer lending platform’s business outlook survey, also analyzed 990,000 limited companies registered with Companies House and found that SMEs are worth an average of $2.9 million. pounds sterling and £3 billion combined.

When asked about the key factors in evaluating their business, 17% of business owners cited their premises and 15% highlighted their product or people.

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Lack of funding was cited as the main factor preventing companies from growing and therefore increasing their valuation, with only 30% of companies having increased their value by more than 10% in the past 12 months.

The research, however, suggested companies were optimistic about the future despite the Brexit turmoil, with 56% hoping to open overseas offices and start exporting to global markets.

“Business owners seem to be driven by business valuation, but recognize how the right kind of funding can really help boost that number,” said Anil Stocker (pictured), co-founder of MarketInvoice .

“It’s imperative that they stay focused on their product or service offering and make sure the fundamentals are right first.

“It’s as much about managing cash flow and working capital as having the right people in the right roles. A well-oiled business will take care of itself. Essentially, getting the basics right will move their businesses forward and the assessment will happen on its own.

Read more: MarketInvoice confirms its departure from P2PFA

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