Lenders have funds to invest in UK business in spite of Brexit
Lenders have significant funds to invest in UK business in spite of Brexit – Businesses are lacking confidence to grasp the opportunities!
The undulations of the Brexit process have slowed down the growth of UK businesses, even impacting businesses not directly affected by Brexit. The fear of a post-Brexit dip in market conditions scares many business owners and it still remains a firm possibility. The indecision around Brexit’s outcome has led many business leaders to defer key growth decisions, retail consumers and home buyers have also become increasingly hesitant and reluctant to spend, resulting in the UK narrowly escaping the criteria for a recession last month.
So what should growth focused businesses do?
The reality is that most UK businesses are not directly affected by the trade implications and international regulatory aspects of Brexit. Most businesses should be resilient enough to withstand a post Brexit market dip, with some cautious financial prudence an intrinsic part of your current budget forecasting processes. That said, Lenders do have money and will to invest in UK businesses right now, but businesses are simply treading water. We’re in the business version of “limbo land” and this inaction is paralysing our growth and prospects. The funding to vastly boost business growth is at your fingertips, but are you being too cautious to grasp it now?
Taking the opportunity to invest during uncertain times more often will yield huge competitive advantage
Many other businesses are “sitting on their hands” during this hiatus, they are delaying key growth areas of business investment like new product development, strong branding and digital transformation. Having experienced five prior recessions/downturns, all the evidence favours braver businesses willing to buck this trend, who can win more sales and steal a march on their competitors. During recessions, it’s stronger businesses that tend to weather the storm. They were forward thinking before times got tough and were always determined to carve out their business strategies, as evidenced by their unflinching business plans and investments.
How to mitigate your risk during potentially turbulent times
Securing huge amounts of debt finance to invest in large projects could seem reckless given current market conditions, however there are ways to mitigate the risk of borrowing and still achieve high growth.
Consider breaking down your growth plans into “bite sized chunks” that correlate with a careful programme of phased investment. Clearly you would attack your primary growth aspirations initially, prioritising the most important growth measures first and achieve these milestones before drawing down more funding.
Composing a funding pitch that instils deep confidence in lenders during changeable market conditions takes skill and a deep understanding of how banks make their lending decisions. Careful business planning with financial resilience at its core is paramount. Philip Waxman has extensive experience of helping companies achieve this position in securing funding and growing quickly.
Author: Philip Waxman is an experienced corporate finance and strategic consultant. As a Chartered Accountant, he has been instrumental in supporting growth plans, raising finance and investment and undertaking M&A assignments for a number of growing businesses including a Pilkington Plc subsidiary and a Private Equity backed technology business.
Talk to Philip today to kick start your business growth plans – 0330 223 5030 or email on [email protected]