While SMEs do still rely on credit from banks, a report released by The Organization for Economic Co-operation and Development (OECD) has revealed that new bank lending has declined in a number of countries.
GIC Capital provides financing options for SMEs looking to sustain growth through privately owned investment companies and is delighted to see that there has been a rise in venture capital investments, peer-to-peer lending and invoice trading.
It’s promising to see that businesses are looking to alternative methods of financing when it comes to supporting the growth of their organizations and for SMEs, this is a wholly positive thing as they will avoid the crippling interest rates that bank loans often come with.
The report from OECD did however reveal that some accessing appropriate funding for certain types of small businesses, including micro-enterprises, young SMEs and start-ups is still proving to be problematic.
Here at GIC Capital we pride ourselves on being able to provide a range of different funding options for SMEs. Whether your business is well-established or just starting out and is looking for finance to support growth projects or simply needs capital for the day to day running of your organization, we can offered tailored solutions that are perfectly suited to your business and its needs.
Further promising findings in the OECD report also revealed that there was a decline in SME bankruptcies in 2016, suggesting much healthier business conditions which should in turn lead to increased confidence for start-ups.
Small businesses in the UK are the lifeblood of the economy and are essential to innovation and growth. Providing reliable funding to these companies is imperative and will ensure that our economy continues to prosper.