In this episode of the Business Finance Bulletin, we open with a look at the findings of a survey carried out by alternative finance provider Amicus on the number of businesses getting a ‘no’ from their banks.

Selling shares in a business to raise capital is often extremely low on an entrepreneur’s radar and yet findings from the British Business Bank’s Equity Tracker Report reveal that the amounts invested are on the increase.

When it comes to late payment we often associated the problem with fellow business owners but what about individuals? We take a look at an unexpected reason as to why this category of customers pay late.

As summer approaches, for many small business owners it’s a case of cashflow summertime blues. A survey from Hitachi Capital Invoice Finance reveals that July can be a tricky time for businesses. What can you do to avoid suffering from cashflow blues?

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

In this Business Finance Bulletin how has the crowdfunding and Peer to Peer lending sector performed in the first quarter of 2016? The latest figures from the Peer to Peer Finance Association reveal solid growth on the same time last year.

HSBC are the latest bank to pledge increased support to SMEs with the announcement of a pot of cash ready to lend. We also look at HSBC’s online lending application platform to help businesses get quicker answers. Taking a leaf out of the crowdfunder’s book?

What sources of finance are small businesses tapping into and what keeps them awake at night? That’s a question asked by Hitachi Capital in its recent small business survey. The answer to the cause of sleepless nights may not be a surprise.

In the Business Finance Tip of the Week, when a bank says it’s for ‘KYC purposes’, what does it mean?

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

In the latest Business Finance Bulletin episode Business Loan Services’ Rob Warlow looks at a survey from Bibbys Financial Services which reveals the sources of finance that business owners are tapping into.

The SME Finance Monitor Report is quarterly survey on the state of the small business finance market and Rob continues his look at its findings. The question posed is how successful are business owners in getting a ‘yes’ from their bank? The answer may surprise you.

In terms of raising money from banks Rob also shares a conversation he had with a business owner on why asking your bank for too little can work against you.

And in the Business Finance Tip of the Week a clip from an interview in which Rob discusses why it’s important to know that banks are keen to understand exactly why you want to borrow and how the finance you are requesting will be used.

If you prefer to listen to the podcast version click below and you can also download this episode to your phone or subscribe to get future episodes via our channel on Soundcloud or itunes.

In the latest Business Finance Bulletin Rob Warlow looks at a recent survey from Hilton Baird Financial Solutions examining the different sources of finance businesses are using today.

The Prompt Payment Code was designed to encourage businesses to treat suppliers fairly and minimise late payment but it could work better and Rob looks at a new Advisory Body set up to improve standards.

Sticking with late payment, a survey from Lovetts, a commercial debt litigator reveals that the amounts outstanding to businesses is on the rise. Watch your cashflow!

Awareness of crowdfunding is on the rise and Rob has news from the Chamber of Commerce of a series of roadshows being run in conjunction with crowdlender ArchOver designed to inform business owners about the options available to them.

Rob also has news that PWC have tied up with MarketInvoice to offer invoice discounting solutions to its clients and in the Business Finance Tip of the Week a look at why business owners hate writing Business Plans!

If you prefer to listen to this week’s Bulletin on your phone or in your car then you can download it as a podcast by clicking the ‘download’ image on the SoundCloud player below.

The latest SME Finance Monitor Report shows how much the funding and finance landscape is changing with small businesses demonstrating cautiousness and a reluctance to engage in seeking out finance.

One of the key findings from the latest quarterly report, which surveys 5,000 UK small business owners, is that issues around access to finance is now slipping off the list of obstacles to running to a business.

The current economic climate continues to be cited as the main obstacle to running the business in the next 12 months with 17% of SMEs quoting this as the main barrier. In terms of access to finance only 8% claimed it to be an issue (compared to 12% in Q1 2013), which appears to be counter to how much press the relationship between banks and small businesses is given.

Interestingly 65% of those surveyed said they see no major obstacles which could hold them back from going for growth. This is an encouraging sign.

With access of finance being seen as less of an issue than we may think, how does this translate in to actually usage of finance?

The report found that 39% of SMEs were using external finance in the second quarter of 2014, which is in line with most quarters since 2012. This means that 60% of SMEs either fund their business via shareholders/directors or don’t borrow.

In fact 39% classified themselves as a ‘Permanent non-borrower’. These are businesses which have not borrowed over the last five years and have no intention of borrowing over the next three months. The number of small businesses who declare themselves as not interested in borrowing has increased steadily over time, having been 34% in 2011 and 2012.

Even the number of businesses which have not borrowed over the last twelve months is remarkably low. Referred to as ‘Happy non-seekers’ these amount to 78% of those surveyed. So nearly 80% of SMEs are quite comfortable in not borrowing at all. This number is also on an upward trend having increased from 66% in Q2 2012.

You do begin to wonder why so much attention is given to the issue of access to finance when so many businesses declare themselves as not interested! But this does have one implication and that is as to how future growth will be funded. Growth typically needs cash to support working capital and investment needs so it is important for businesses to realise that growth usually needs finance and not to shy away from seeking it out.

Of those who do borrow, the range of finance products they use is also beginning to change. The report found that 30% of SMEs used ‘core’ products (loans, overdrafts and/or credit cards), but this is a declining proportion over time (it was 36% in Q2 2012). Other forms of finance, such as leasing, invoice discounting, private loans and crowdfunding, are being used by 17% of businesses so there is a lot of scope for alternative lenders to grow.

It’s clear that many businesses are comfortable where they are but for them to grow a finance need will kick in and it’s vital they don’t fall into the trap of going for growth with no cash… that can only end in disaster. But there is also a need for all finance providers to ensure that funds are there when needed and sending a clear signal that they are ‘open for business’. We don’t want businesses assuming they will get a ‘no’ and not even approaching a bank in the first place.

We will continue our look in to the findings of the latest SME Finance Monitor Report in future blogs.

One alternative source of business finance that is growing in popularity is family and friends.

In this clip taken from an ‘Access to Finance’ seminar for the accountancy body, ACCA, Rob Warlow talks about the pros and cons of getting business finance from this source.

Beware!