Survey findings show the growing need for alternative forms of finance for small businesses

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40 percent of SME applications rejected for funding indicates the need for alternative finance, says business cash advance provider MCE.

In the current climate it is incredibly difficult for SMEs to get the money they need to develop their businesses from the traditional High Street Banks.

A survey by venture capital investors Albion Ventures suggests only 17 percent of SMEs applied for much needed funding, and 40% of those were rejected.

The survey was conducted on 450 small UK businesses and comes at a time when the topic of bank’s lending to small business is under the spotlight.

Small and medium sized business owners have found it difficult to obtain funding from the major banks since the banking crisis, and initiatives to rectify this have met with a succession of setbacks.

First the Government’s Business Finance Partnership was criticised for failing to live up to expectations and then Nationwide, the country’s biggest building society, announced it was scrapping its planned small business lending scheme.

However as small businesses continue to struggle to get funding from banks, alternative forms of finance, which hold their own advantages, are coming to the rescue.

One such example is small business finance company MCE, which offers the product Business Cash Advance. It recently celebrated providing more than £50 Million to UK SMEs - showing that there are viable finance options available to small businesses.

Managing Director, Paul Mildenstein said: “In the current climate it is incredibly difficult for SMEs to get the money they need to develop their businesses from the traditional High Street Banks. This comes at a time when many small businesses see the need to invest, expand and grow.

“MCE was the first business in the UK to offer ‘cash advances’ that provides a straightforward way for companies to repay the money as they earn. It’s a percentage of your card sales, so you only repay once you have the takings to do so.

“No other borrowing instrument or loan product is this flexible.

“We understand that time is precious and so is cash flow. There are no complicated forms and we approve more than 90% of applications. With the repayment as an agreed percentage of card takings, it’s friendly on the cash flow, because if the business doesn't get paid, we don’t either.”

To find out more about the MCE and the Business Cash Advance product, click here.

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Deborah Mudway
@BusiCashAdvance
since: 03/2012
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