The latest SME finance monitor report has showed that 8 out of 10 SMEs are refusing to apply for new finance as a result of Brexit uncertainty.

Angus Dent, CEO of Peer to Peer lending platform ArchOver, on why that is the wrong approach for businesses and why a strong UK economy needs companies to be bold and take on new finance.

In response to figures Angus Dent, CEO of P2P lending platform ArchOver said “Judging by the latest statistics, too many small businesses are unwilling to take on new financing. It’s a natural instinct to avoid debt in an uncertain economic climate, but that is the wrong attitude for SMEs that want to grow. Too many SMEs are using their own life savings to fund their business or see the bank as their first port of call when they need to raise money. Instead, we need to do more to educate SMEs on how they can use their greatest asset – the general ledger – to secure other forms of finance.”

“SMEs also need to be more confident in considering alternative finance providers that offer a more flexible and personalised service. Fixed-term financing makes access to funding easy and simple and gives SMEs the cash flow security that can support future expansion. The UK economy depends on a booming SME sector, and finance is the bedrock of growing a small business. Rather than relying on sluggish, nervous high street banks, SMEs need access to flexible cash facilities.”

“UK businesses simply can’t wait for someone else to hand them their fate – they must take on new finance and control their own destiny.”