The events of the last couple of years have been damaging for individuals and businesses alike, and SMEs have required further financial support up and down the land. It is still the case that many of them will turn to their bank in the first instance, but there has been a general sense of dissatisfaction among them. For this reason, many SMEs are looking at specialist financial providers and the benefits that could be obtained by going down this particular path.
What percentage of SMEs are dissatisfied?
It could be as many as two-thirds of businesses that are feeling dissatisfied with their bank during the covid crisis, according to a survey that has been conducted by Parliament Street’s Think Tank, which completed a survey of 250 businesses. The other main statistic that came out of this survey is that 55% of these businesses are seeking out a new financial provider based on what happened during the pandemic. More than half also believe that their bank does not put their needs first. Perhaps one of the most surprising statistics that emerged from the survey is that over two-thirds of respondents thought that the financial services offered by their bank were limited. Many have struggled to access the professional consultancy they need.
Justinas Basalykas, chief executive of banking services provider SH Payments, commented: “SMEs are the lifeblood of the global economy, and it’s shocking that so many feel disappointed in the support offered to them by banks over the last year.”
What are SMEs looking for?
Ultimately, SMEs are on the lookout for financial providers that they believe put their individual needs first, which is something that many of them are not getting from the standard banks out there. At present, 34% of the businesses surveyed are seeking an alternate financial provider. This gives them access to tier one banking services and offers more financial options – something they cannot get at banks.
Meanwhile, over half of them are considering investing in Bitcoin and other cryptocurrencies. Over half of them also said that they need to access loans or credit in order to fuel their growth over the following 12 months. All these stats prove that businesses are considering alternative investment models over traditional forms.
The previous 18 months have been unprecedented in so many different ways, and businesses are certainly going to need the funds that will help to put them on the road to recovery. If the banks continue to make businesses feel let down, the number of those seeking alternative finance options available is likely to keep growing.
Reasons to Use a Finance Broker
Now that we have identified that so many companies are feeling a general sense of dissatisfaction, you may be wondering why using a finance broker could prove to be an appropriate choice for you. First of all, you can expect to receive a more personalized level of service from people who can offer bespoke advice about your business situation and the package of financial support that will prove to be the most effective for your recovery and growth.
It is easier to use a finance broker than many people initially think, but taking that first step can prove to be the hardest. For this reason, many companies go back to what they know and opt for a bank. However, with huge levels of dissatisfaction from many companies who are now seriously on the hunt for an alternative that will fuel both their recovery and their growth, this may not be the right choice for you either.
For more information on how using a finance broker like TSF Finance could be beneficial to your business, check out the range of options that you have available on TSF Finance and get in contact to find out more.