|
News Index
Next
Previous
Finance professionals are struggling to penetrate the UK SME sector due to a
lack of understanding regarding funding options among owners and managers,
according to new research from global business cashflow solutions provider,
Bibby Financial Services.
The annual Bibby Financial Services survey found that 42% of finance
professionals rated SMEs’ understanding of the funding options available to them
as ‘fairly poor’ or ‘very poor’ – showing no signs of improvement during the
past twelve months.
Cited as a major barrier to penetrating the SME market, 32% of financial
professionals were also concerned about increased competition, jostling with
their peers for a share of the market before it reaches saturation.
A further 30% found it difficult to manage the sales process and follow up new
business leads.
In addition, 29% admitted their own misgivings could be holding them back when
it comes to understanding the requirements of small and medium-sized business
owners and managers.
David Robertson, chief executive of Bibby Financial Services, explained: “While
SMEs lack of knowledge about funding options is frustrating, it represents a
unique opportunity for the finance community to take the lead in educating
owners and managers on the finance options available to them, and how they can
use them to benefit their business.
“Two of the most common reasons for owners and managers to find themselves in
danger of becoming another small business failure statistic, were found to be
poor business planning (53%) and inadequate cash flow (34%), both areas where
finance professionals can provide invaluable support and advice.”
Other major concerns voiced by SMEs when discussing financial matters with their
advisors, centre around securing funding to grow their business (30%), getting
clients to pay on time (22%) and how to fund their business more cost
effectively once secured (14%).
“Again, these are all areas where financial professionals can offer best advice,
rather than simply trying to sell clients a funding solution," continued
Robertson.
"Accountants and finance brokers that take the time to try and understand the
pressures and constraints of their smaller clients and become trusted advisors,
not just a source of funding, will be one step ahead of the competition when it
comes to securing their share of the market.”
Source:
RedAlert
|
