SMEs seek diverse sources of financing
According to a new survey of 5,000 SMEs conducted by ICM on behalf of the Business Banking Insight (BBI), information and communications businesses are the most keen to consider relatively new forms of funding such as peer to peer lending (32% and 33%, against a national average of 23%).
Information and communication businesses were also considering selling equity in their business to help raise funding for expansion (25% against a national average of 16%). Manufacturing, professional services, science and technology and real estate firms were also more likely to sell equity (23%, 21% and 20% respectively). Agricultural firms, however, were much less likely to do so (at just 8%).
Overall, the survey found that 73% of businesses would consider investing their own money to expand their business, 63% would consider a business loan and 59% would consider a business overdraft.
To find more information about financing, 70% of small businesses would consider talking to their bank, 78% would turn to their accountant, 58% would talk to an independent financial adviser and 41% would look online at financial advice websites, the survey found.