By Josh Levy, CEO of UItimate Finance

 

As we approach the final application date for the current government financial support schemes on 31st March 2021, now is a critical time for businesses to have a solid growth and recovery roadmap in place. Announced with the Budget, the new government Recovery Loan Scheme is planned to be rolled out on 6th April, and business owners and lenders alike are already planning their transition from the state support model.

As an asset-based lender who has remained committed to supporting businesses throughout the pandemic, we understand that the current environment is still challenging for many business owners.  Despite the prediction of a promising economic upturn to come, navigating the next few months as we come out of national lockdowns, alongside managing any impacts from Brexit, will not be easy for many.

With more businesses prepared to get external financial support than ever before – 45% in 2020 compared with only 13% in 2019 according to the British Business Bank’s latest Small Business Finance Report 2020 – they’re also facing new difficulties when trying to access working capital funding as some providers have already started to reduce their risk appetite towards new and existing funding facilities, and particularly for Invoice Finance which helps to deliver much needed cashflow.

At Ultimate Finance, we believe that despite the challenges, the recovery phase could empower businesses to embrace manageable business debt in a way they have never done before. This is where non-bank lenders alongside financial brokers and intermediaries play an integral part in keeping businesses moving through a unified voice: impartial and professional advice from brokers and introducers is more necessary now than it has ever been, particularly to businesses seeking funding for the first time or looking to establish the right long-term debt financing structure.

The industry needs to rally together, be prepared to educate and support business owners in the opportunities debt can bring to move them from recovery to thriving with the cashflow they need. That’s why our funding model is based on long-term relationships with our clients and introducers: our teams provide added value beyond the much-needed access to flexible and tailored working capital facilities. It is this approach that has helped us become the funding partner of choice for more and more businesses as we provide them access to the liquidity that will enable them to trade through uncertainty and capitalise on opportunities for growth.