Many Limited company contractors considering a change of business funding provider
Limited company contractors may relate to a recent report revealing that many SMEs are considering a change of business funding provider in 2014.
According to findings from Bibby Financial Services, a third of small to medium-sized UK firms are looking to change their business funding provider this year, citing a lack of flexibility and poor customer service among the top reasons for moving.
The survey of 1,000 SMEs revealed that business owners expect similar levels of service as non-business customers, with more demand for facilities such as 24-hour online access.
The research carried out by the independent invoice finance provider, shows that one in five respondents believe their current arrangement is inflexible, with 42% suggesting the service they receive from their existing provider is average or poor.
David Postings, chief executive officer at Bibby Financial Services, commented on the findings, “Our research shows that a significant proportion of UK businesses are considering the use of other forms of finance to their existing arrangement and it seems that many are not completely satisfied with their current provider, which is likely to be a driver for change.
“SMEs today expect much more when it comes to flexibility in relation to the amount they can borrow, contract length and online access to finance.”
More than a third of the smaller sized businesses surveyed said that a cheaper deal would encourage them to consider a new arrangement, 17% said that they would prefer a shorter term agreement, and 15% said they would like to try a providers’ services before committing.
David Postings added, “In terms of finance, businesses are becoming more like consumers and they want to try out different types of funding before taking them on.
“Increasing funding available to SMEs is critical to building solid foundations for sustainable economic growth, but it’s evident that funders need to become more flexible in their approach if they are to meet the growing demands of the marketplace.”
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