Small Company Funding vs Big Company Funding

business finance reportThere is a gulf between the finance that small companies can access and the finance that big companies utilise.

The diagram here shows what percentage of companies are using external finance. By ‘external finance’ we mean any funding line from any lender, whether that be asset finance, mortgage, overdraft, factoring or anything else.

The diagram is produced from information published by BDRC Continental‘s ‘SME Finance Monitor Report 2013’.

The Interesting Part

OK, so anyone can through a few statistics around. However, these are actually quite interesting when you look at the different attitudes to funding between big and small companies.

For any business person who says that small company funding is hard to come by then this report appears to validate those beliefs.

At Lime Consultancy we disagree. The perception that small company finance is difficult remains, but there are always solutions. Sometimes this is all about preparation. Sometimes it is about having access to the right type of finance.

This is the core difference.

The Small Business Difference

This post is aimed at small businesses. So, if you had the resources of a large business, say a qualified accountant, a banker on your side, a finance controller and a number of other skills all in house then you would reasonably expect to be able to access the right funding, first time.

In our opinion this is the difference. There is funding out there for small businesses, it is just not so obvious.

Small business funding is not advertised to you, it is not offered to you when you open up outlook of a morning. You have to know where to look, and more importantly, how to deal with the lender to get your proposal presented right.

The whole Lime Consultancy ethos is built around giving small companies the same access to funding as large companies have.

Look At The Stats

  • 1 in 3 ‘no employee’ companies use external finance, this has fallen from 45% in 2012
  • 50% of small companies use external finance
  • This rises to 73% in large companies

All this points to a demand for finance among small businesses, but either a lack of access to finance, or a lack of awareness of finance.

If you want the solution then give Lime Consultancy a call and we will point you in the right direction. You can also download our small business finance summary here – Business Finance Report

Any comments, please add them above using the reply button, or contact Lime Consultancy direct on 01293 541333.

By Lime Consultancy

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