50% of British business owners do not know the best finance option for their business according to statistics from the platform Start My Business.
500 CEOs and decision makers were polled in the survey and they were expected to observe financial understanding and the awareness of business owners in a post-pandemic world.
Younger business owners, perhaps unsurprisingly, were the ones who were least in the loop. 57% of owners under the age of 35 admitted that they did not know where to look or what options to go for when it came to refinancing their business.
61% of those surveyed do not know how to access anything beyond the traditional bank loan and that figure is particularly prominent within larger organisations that feature over 50 employees.
The CEO of Start My Business, Shoaib Aslam, said: “Understanding your options when it comes to business finance is vital to any successful start-up or established business, and it is disappointing that there is such a lack of guidance and support to help business owners realise their options.
“With small business in particular so important to the economy, the government should be front and centre in highlighting business finance options, especially amidst the cost-of-living crisis.
“Part of the issue for business owners is that all of the tools they need are spread between banking apps, accounting software, and a whole host of other services required for a successful business, adding to the complication of the business finance process.”
Some refinancing solutions are more obvious than others, however, others are a little more left-field. These include:
This could be particularly useful if you want to acquire a car or another vehicle without paying the full cost outright.
This could help you get a semi-residential or a commercial property if you feel that it will be of benefit to the business.
This can help a business to chase up their late invoices, saving them the time of following up after late payments and allowing them the chance to relocate efforts elsewhere.
A company offers some of its assets out for financial benefit in the short term. This could be to make the most out of a particular productive time of the year, using that finance to bring in a new type of material, for example.
At Business Helpline, we have a number of refinancing partners who could help find a solution to your needs. We are also here to offer you advice if your business finds itself in a financial pickle and you don’t know where to turn. We have got your back! Call us today at 0800 088 2142.
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