The real impact of Brexit on UK businesses and the economy as a whole remains to be seen. While the market has been very volatile post-Brexit, we are still seeing strong signs of growth. In fact, many UK-based businesses are taking advantage of this steady economic growth to expand their operations, particularly in the EU.
Despite the positive outlook, expanding operations is not always a straightforward process. There are barriers to break through; raising equity is one of them. Businesses are finding new ways to finance expansions and further grow in this economy.
Project-Based Financing
The most attractive financing alternative used by many companies is project-based financing. Instead of raising capital to expand to new markets, British companies are taking their expansion one project at a time. There are plenty of options to support this approach too.
Aside from invoice factoring, businesses can rely on cash advance loans. Business cash advance loans are slightly different to the similar loans available for personal users. For starters, the maximum principal amount of the loan is larger. Some of the best cash advances for UK businesses go all the way up to £150,000.
There are a number of requirements businesses must meet to qualify for the loan, but the best cash advances are offered with easy application and fast approval. These two features allow businesses to turn to this type of loan whenever they need to raise funds for a project quickly. The terms of the loan can also be customized accordingly.
New Partnerships
British companies who are trying to enter new European markets are finding collaboration with local enterprises to be another solution worth considering. New partnerships are being formed to allow UK businesses to remain competitive in European markets. On the other hand, European companies are benefiting from the UK’s manufacturing prowess.
Experts believe that more partnerships will be formed as soon as the UK takes further steps to leave the European Union. Partnerships enable businesses to raise funds to further grow in the economy. It is not uncommon for partners to exchange resources, even though the exchange is not always in the form of loans or financing.
More Investors Entering the Market
The steady growth of UK businesses is attracting investors from all around the world. British investors are more eager to invest in UK companies, especially companies with a clear set of expansion plans and good signs of growth. The same can be said for investors from Middle Eastern countries.
We saw a jump in the number of Chinese investors entering the UK in 2008. That trend is still apparent. In fact, investments from China are starting to dominate the market. The massive influx of investments allows UK businesses to get additional investments at a good valuation. The saturated financial market is good for corporations who are trying to attract new investors in a more controlled way.
The use of these financing alternatives continues to power the growth of UK businesses. It will not be long before we start seeing faster economic growth, more expansions, and great results.
FinSMEs
22/05/2017