- 34%(2) of SMEs plan to use external funding to grow their businesses this year.
- Over a third (34%)(3) are turned down for capital on first application.
- SMEs are negatively affected by increased operating costs, fluctuating income and late customer payments.
- Boost Capital has launched in the UK to help close the funding gap for growing businesses.
Over a third (34%) of the 5 million(4) SMEs in the UK need external capital to help grow their business this year, according to a recent report for the Department of Business, Innovation and Skills by IFF Research. However, with little evidence that proposals such as Project Merlin, Funding for Lending and the Government’s new Business Bank are yet working, other financial solutions have become critical for SMEs.
Boost Capital is entering the market to provide UK businesses with working capital to help take advantage of growth opportunities. The company brings over a decade of experience in business financing through its US parent company, Business Financial Services, which recently acquired a $82 million credit line from Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC).
Most businesses will need an influx of capital at some point. They may have difficulty getting a conventional bank loan or perhaps have a business opportunity that requires quick access to capital. Boost Capital looks at each business individually and makes funding decisions after getting to know the owners and learning about their history, revenue trends and their relationships with suppliers.
According to Marc Glazer, CEO of Boost Capital, “So many of the UK’s SMEs are struggling to get funding via traditional lenders. Despite government proposals intended to help, we have yet to see any significant impact. We believe it is essential that SMEs with growth potential have access to financing—without a prolonged, difficult process. That’s why our goal is to provide capital in as few as five business days.”
“Drawing on over 10 years’ experience with over 12,000 SMEs in the US, we’ve offered our services here on a trial basis since last summer. Our UK customers, many of which are businesses on Britain’s high streets, all share a common goal—growth—and a common challenge—securing capital. Having secured a significant credit line, we are excited about getting funding out to SMEs across the UK.”
“Small and medium-sized businesses are the bread and butter of the UK economy,” Glazer says. “There are a great many SMEs with solid finances who are struggling to get access to capital to fulfil their growth plans. We’re here to meet their funding needs, which include affordable repayment plans that are sensitive to SMEs’ sales and business fluctuations. Without a much-needed boost, SMEs cannot contribute to the country’s economic recovery that everyone is hoping for.”
View a video of Marc Glazer talking about Boost Capital’s financial solutions for SMEs in the UK.