01827 68939
info@shireleasing.co.uk
lockShire Online - Login
Twitter
LinkedIn
Shire Leasing logoShire Leasing white logo
  • About Us
    • History, Vision & Values
    • Meet the Team
    • Affiliations
    • Corporate Social Responsibility
    • Stakeholders (Section 172 Statement)
    • Career Opportunities
    • SME Finance Charter
  • Customer Finance
    • Types and Solutions
    • Vehicle Finance
      • Vehicle Solutions (existing customers)
      • Clean Air Zone Financial Assistance
        • Bath & North East Somerset
        • Greater Manchester
    • What Can Be Financed?
      • Catering | Restaurant Equipment Leasing & Finance
      • Gym Equipment Leasing & Finance
      • IT Equipment Leasing & Finance
      • Printing Equipment Leasing & Finance
      • Security Equipment Leasing & Finance
      • Air Conditioning Equipment Leasing & Finance
      • Finance For Farms
        • Farm Vehicle & Tractor Finance
        • Livestock Finance
        • Agricultural Machinery Financing | Agricultural Equipment Finance
        • Farm Diversification Funding
      • Renewable Energy Finance
    • Recovery Loan Scheme (RLS)
    • New Business Equipment Financing
    • Shire Members’ Club
    • Make a Payment
    • Testimonials / Case Studies
  • Supplier Finance
    • Services and Technology
    • Industry Specialisms
    • Training (Lead with Lease)
    • Case Studies & Testimonials
    • Supplier Support Portal
  • Blog
  • Resources
    • Resources & Guides
    • Videos
    • FAQs
    • Industry Terminology
  • Contact Us
SME problem

Solving the SME problem that refuses to go away: growth

05 DecShire LeasingFinance for SMEs, SMEs

Back in 2012, the Federation of Small Businesses (FSB) reported that SMEs were struggling to raise the money they needed to expand. At the time, it found that 42% of SMEs who applied for a loan said they were turned down. That was then, though – surely things have changed?

Unfortunately, not much. In fact, accessing finance has got harder, if anything. A 2017 study by American Express revealed that 57% of SMEs struggle to obtain finance. Meanwhile, in a 2018 study by the British Business Bank, one in three SMEs said that they wanted to grow their operation, but were unsure how.

These findings tally with our own research. Nearly half (49%) of the 250 decision makers in our survey, conducted by Atomik Research in August 2018, said a lack of funds for equipment has prevented their business from scaling up. In fact, 68% of businesses find it challenging to access funds for equipment, full stop. The struggle for budget is particularly tough in the manufacturing sector, where 84% of businesses said they find it hard to buy new equipment.

Without the latest equipment and technology, growth is out of the question. In order to grow, businesses need to have the capacity to take on more work, while maintaining relationships with current customers. That’s not always possible when staff are using outdated equipment that’s preventing them from working as efficiently as they can.

What’s the solution?

Business decision makers understand that new equipment would allow them to serve their current client base better and open up their products/services to new customers. When we asked how they think they’d benefit if they were to purchase additional or upgraded equipment, the most common responses were:

  • Increased quality of products/services (38%)
  • Faster delivery of products/services (37%)
  • Enhanced communication with customers/clients (34%)
  • Enhanced communication within the business (30%)
  • Enhanced reputation for innovation (30%)
  • Ability to increase customer base (30%)
  • Increased profit margins (26%)

Here’s the problem, however, with buying new equipment outright: it means having to spend large amounts of capital, or going out and using existing lines of credit such as bank loans (if you’re able to get one) or overdrafts. Both of these options are not going to make any business leader comfortable – having capital in the bank is crucial for any business with ambitions to grow, while bank loans and overdrafts should surely be saved for more appropriate times and uses?

There is another way which enables you to keep hold of your capital, without having to go to the bank for a loan or an overdraft agreement.

By leasing the equipment, your business doesn’t have to worry about spending large sums of cash on an asset that is likely to lose value during the repayment term of your borrowed funds, whether the equipment is used or not. With asset finance you pay as you use, alleviating cash flow by spreading the cost. Often, your agreement can begin with just the initial payment.

With some finance options, you can even upgrade your equipment at any time, allowing you to decide when it’s the right time to grow your business, rather than having your fate put in the hands of banks.

If you’re ready to discuss your business finance options, give us a call on 01827 302 066 or request a callback here.

Tags: Finance for SMEs, SMEs
prev How to Build Your Business Credit Score next Businesses could unlock better customer service by upgrading equipment
Shire Leasing

Related Articles

Brexit means Brexit

“Brexit means Brexit” – but what does that mean for UK SMEs?

03 AugMark Picken
Grants, credits and loans that help finance growth

6 SME Grants Credits & Loans that Help Finance Growth

15 MayHelen Lumb
How to improve your business cash flow

10 Ways to Improve Cash Flow for Your Business

02 JanShire Leasing

Quick Links

  • FAQs
  • Career Opportunities
  • Terms & Conditions
  • Privacy Policy
  • Fair Processing Notice
  • Make a Complaint

Get in Touch

Registered Office:
1 Calico Business Park
Sandy Way
Tamworth
Staffordshire
B77 4BF
CONTACT US

Shire Leasing PLC is Authorised and Regulated by the Financial Conduct Authority for certain types of consumer credit lending and credit related activities that are regulated under the Consumer Credit Act 1974 and by the Financial Services and Markets Act 2000. For certain types of products Shire act as a lender and a broker and for some products we act as a broker only. Our firm reference number is 313055.

Twitter
LinkedIn

 

Tel: 01827 68939
Email: info@shireleasing.co.uk

Registered in England and Wales
No02476571

VAT registered 558 894 080

Registered with the Information Commissioners Office Z4611407

HomeAbout UsBlogContact Us
© 2017 All rights reserved. Site by Catalyst
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT