SME’s seeking funding are doing so to expand their business

Statistics collected by the Government in 2022 show that the SME sector accounts for 99.9% of the business population. If we break this down there are 5.5 million private sector businesses, 1.4 million employ staff and 4.1 million have no employees. Analysing further 5.47 million fit in to the small business category (0 to 49 employees) which equates to 99.2% of the business population. *

These figures clearly show one majorly important statistic, the SME sector is vital to the UK economy.

It is therefore encouraging to hear that a key reason for SME’s wanting to seek business finance is so that they can fulfil their expansion plans. The reason we feel confident in the accuracy of this statement is that during our fact-finding exercise for new funding applications we always ask the business, “what is your key purpose for this funding?” Over 75% of the responses are always the same, “we are seeking financial assistance to help with business expansion”.

The top 5 most popular reasons for securing new business finance in relation to expansion are:

• Introduction of new products to fulfil ongoing customer demands.
• Investment in new machinery to improve business efficiency.
• Acquisition of a second business to complement existing products or services.
• Recruitment of additional staff to fulfil new contracts.
• Purchase of second building or expansion to existing business facilities.

A positive and thriving SME sector is vitally important to the UK business landscape and in turn the UK economy. Being able to support these businesses with all their growth plans is something that the NGI team are hugely passionate about.

If you have any questions or would like to discuss any aspect of business finance, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.

* statistics taken from gov.uk website