Liquidity Club has expanded its team with the appointment of Tim Corbett to lead the firm’s expansion into London and the South East.
Liquidity Club has expanded its team in the North of England with the appointment of Chris Carter as the Regional Director for the North West region.
Chris’ appointment highlights the successful growth of Liquidity Club which was launched a year ago as an alternative business channel for business funders to assist SME’s looking to raise finance to support growth and present impartial financial solutions that are tailored to suit each individual business.
Chris will concentrate across the North West region including Manchester and will work alongside colleagues in the Birmingham and Leeds teams. Chris has extensive experience in the banking and financial services sector having recently worked for Mercia Fund Managers and prior to that the Royal Bank of Scotland and NatWest.
Recently published statistics indicate that only 34% of SMEs are using external finance, while only 47% are planning to grow in the coming 12 months. Could this indicate that SMEs are lacking the funding to expand? Or could it be that SMEs are lacking information regarding how debt finance could benefit their business?
Those SMEs who have borrowed in the last 12 months have generally used finance for expansion (29%), working capital (28%) or purchasing capital equipment (22%). In addition, around 2 in 3 of these borrowers have used finance provided by their main bank. 85% of SMEs are using finance provided by a company with whom they have an existing relationship, whether a bank or another provider. Contrary to the common media rhetoric, only 12% are being declined when applying - a real positive message.
One concern amongst the statistics is that only 4 in 10 businesses are consulting a professional advisor or finance provider about funding. This can be so valuable in finding the right structure and cost of funds. At Liquidity Club we have seen numerous businesses able to release far more cash, or save money, when moving to new providers compared with their incumbent provider. Yet only 7% of SMEs, in the statistics, have moved to a new provider in the last year.
Perhaps this highlights the need for more information being made available to directors of SMEs. Equally, it may be that increasing choice of providers, complex terminology and the number of different products can be confusing for those directors of SMEs. For any who agree with these sentiments, we would welcome a conversation about debt funding to break down some of these barriers.
All statistics sourced from BVA BDRC:
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