Is Your Knowledge of Business Loans Out of Date?
A shocking report recently published by the KPMG tax advisory firm suggests that, on average, small businesses are determining the best uses of their financial resources based upon information that is more than 4 months out of date. It is believed that relying upon outdated financial information – particularly in terms of business loans and investment opportunities – is preventing small businesses from contributing around £1 billion to the economy due to a lack of growth and development.
The study found that 40 percent of British businesses worry about financial uncertainty, but are basing these worries on information that is no longer relevant. Business loans are a prime example. Media sources just a few months back were focused on how high street banks were still wary about lending to small businesses, despite a boost in the economy. Today, however, there is a much heavier focus on alternative business loans, such as invoice trading, peer-to-peer lending, and asset-based finance.
Physical assets are cited as some of the most important aspects for business growth. This includes staff, equipment, necessary vehicles, hardware, and property. However, investments into these areas specifically aren’t increasing at the rate that would be expected given the recovering economy. ‘The UK’s economic recovery has been driven by rising employment but growth in productivity has so far been unimpressive’ says Dan Aylward of KPMG. Outdated knowledge of business loans is partially to blame.
Seven percent of businesses claim that had they had access to more up-to-date information regarding investment opportunities and business loans, they would have invested more in the growth and future of their business – 17.6 percent more on average, to be precise. It’s estimated that businesses that do have access to relevant information regarding business loans and business finance grow at roughly twice the rate as those who rely exclusively on information that is no longer relevant to the moment.
How to Keep Up-to-Date with Business Loans
Staying in-the-loop when it comes to business loans and business finances isn’t as difficult as you may think. Here are just some ways that your business can remain up-to-date when it matters, and where it matters: