SME funding available despite BoE warnings

A new study has found that funding for small businesses in the automotive industry is still available despite the Bank of England warning of the biggest lending squeeze since the financial crisis of 2008.

Rob Straathof, Liberis CEO, said: “While the BoE’s projections are concerning, naturally they refer to Bank lending and should not be confused – neither are they representative – of the entire funding landscape.

“There are numerous responsible funding options from the alternative finance sector, designed specifically to support SME growth and indeed the automotive sector, an important part of the UK economy.”

According to Liberis Finance’s Quarterly Funding Trends report, the first quarter of 2020 will see the automotive sector seeking funding for cash flow, while the second quarter will be about purchasing new stock and equipment.

The biggest spike in funding comes in the third quarter, with businesses across the sector again purchasing stock.

 Straathof said: “Our analysis shows that it is not all about paying the tax man or keeping a business’ head above the water. In fact, our data shows that funding is about growth and forward planning.”

Some eight per cent of all Liberis Finance funding goes towards the automotive sector, constituting a total of £20.8m in 2018.