Research from the British Chambers of Commerce suggested that over half of UK businesses have not attempted to apply for finance over the past year. With the bulk of companies interviewed looking to invest in critical areas such as IT and data securities, staff training and marketing and advertising.
What’s the reason to hesitate when requesting a loan?
We can think of a few reasons.
Crisis, Scams and collapse
The Recession crisis between 2007-13 was a source of high unemployment for many. Bad loans from the US, an increase in lending and the inevitable payback from the government. This all helped with the lack of real change and productivity around the time. Low wage growth, flexible labour markets, limited technological innovation and investment. The recession dented the economy.
So after all this passed, banks and UK business owners were on the way to mend their broken relationship?
HBOS concealed its involvement in a scam on small businesses. The news that came to light of these proceedings, inappropriate loans would be given to struggling businesses.
Not quite, with these instances and the sting of the recession still ebbing in the back of owners nationwide, is it no wonder why 15% of small UK business owners fully trust traditional bank lenders.
Funding Alternatives
Instead of vying for credit from a bank official, many would-be inventors use crowdsourcing platforms to reach their goals. Take Kickstarter for instance, pledgers back creators through reward tiers, a famous UK example of this is the LIX 3d printing pen that surpassed it’s £30,000 goal to £731,690 with 8,030 backers.
Other platforms like Crowdfunder were featured in the news recently for “trump baby” project that would be flying around the president’s arrival in London. Yoga to stocking supplies, businesses in the UK simply opt-in a message for help and watch the supporters grow.
Of course, these are examples of entrepreneurs thinking outside the box.
Although, there is an important distinction between this and banking loans.
Unlike the cost to your credit score, setting up a campaign sometimes doesn’t cost a thing. Sites like GoFundMe allow users to create “personal campaigns” for free. The concept of trust is something we at Direct365 take very seriously.
Trust with Direct365
While businesses are taking their time with deciding who to trust and what avenues to take with cash-sourcing, other aspects of the business often trail behind. Such as the upkeep of the waste management and the testing of fire safety equipment.
We set out to be the solution to the problem we faced when starting up, finding a provider who provides quotes on time and sticks to their word. Trust comes with reliability. With so many easily forgotten background tasks bound by legislation, we aim to deal with this so you can focus on your customers.
See why we are the established and trusted provider for small business across the UK. Visit our central hub for essential workplace services, today!
