It is perhaps understandable that many SMEs could only name a limited amount of lenders to turn to for funding but it has been an ongoing campaign at the NACFB to ensure that the scope and range of funding sources are wider than the traditional High Street lenders.
Currently we have 66 lenders registered with the NACFB which gives an indication of the wealth of choice available but how many would the average SME be aware of?
And this is exactly what I have been campaigning to achieve over the last few years with successive governments, SME Trade Bodies and in the National Press. How do we get businesses looking for funding to be introduced to this wider range of lenders?
In March I attended the Genesis Initiative at the House of Commons which brought together a range of Trade Bodies that represent nearly 1 million SME members.
The day included a discussion regarding how the 113 Trade Bodies that represent nearly 1 million SME members would be able to benefit from knowing how to access these different lenders rather than just the High Street lenders.
And I believe this comes from raising the profile of the commercial broker. The broker plays an integral part in educating SMEs to the range of lenders that are available. If a business that wishes to expand is turned down by their business account provider, the search for funding usually ends.
The business will not expand, therefore not employ more staff, help other businesses and will stagnate until credit criteria eases.
But if a commercial broker can introduce the business to an alternative range of lenders and educate the SMEs about the scope of funders, the business will be able to invest and expand aiding the economic recovery.
This highlights perfectly how integral the broker is to businesses, the recovery and the wealth of opportunity there is for the experienced commercial broker.
