The stars are not aligning and pointing to the opportunity to add value to your clients in June – but you could say that certain surveys have aligned to do just that.
A very positive Lloyds Bank Business Barometer, a closely followed trading business survey, was released at the end of May. It shows that overall business confidence has risen to its highest levels since November 2015, before the Brexit referendum.
The increase in confidence was attributed to firms\’ trading outlook and their outlook for the broader UK economy—this positivity was only dreamed of 12 months ago amid the energy crisis, steep inflation, the cost-of-living crisis, and interest rates still in their rising cycle.
Business Confidence
Business confidence is the key to so many positive actions from trading businesses – investment in staff and equipment, growth plans get actioned – and opportunities to business and drive this growth that they might previously have shied away from to be cautious are more likely to be taken up.
And how they can fund this positive action is where the opportunity to add value comes in for you, their advisor.
And it is where we bump into our other survey – from online commercial finance provider Iwoca, it surveyed a large number of commercial finance market participants and emphatically concluded that brokers will play a significant role in sourcing suitable funding for SMEs where the high street banks step back, with a decrease in appetite to fund small businesses.
Increased Demand
\”The poll shows that 77% of SME finance brokers believe high street banks will decrease their appetite to fund small businesses.
The survey also found that 86% of brokers expect increased demand for SME finance in the next six months, but 68% believe high street banks will further reduce access to working capital for SMEs over the next twelve months.\”
We see this as a void into which advisors can step. They have access to a range of suitable funding options to meet the demand of businesses that have the confidence to take on new opportunities but don\’t have the working capital to unlock them. And they are unable to source this from their own high street bank.
Affording business opportunities can cause business owners sleepless nights – all of the costs of taking on a new business opportunity are immediate and up front, with the revenue from goods or services coming in later as they invoice their clients.
Additionally, is there an opportunity cost in not quoting for or taking up new business opportunities – will the client return if, on this occasion, a competitor fulfils the work?
With access to a range of business finance products, the client can access suitable funding that fits their cash flow situation and what they can afford to leverage to unlock business opportunities.
Where do we see the opportunities in June? They lie with advisors who understand their clients\’ commercial drivers and share their confident outlook.
Mark Grant, Managing Director, Fiducia Commercial Network.
June 2024.
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About Fiducia Commercial Network
Fiducia Commercial Network is a commercial finance \’Appointed Representative\’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.
Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.
The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years\’ experience in commercial finance.
If you\’d like to discuss joining Fiducia Commercial Network or you\’d like to apply to become an Appointed Representative…
To discuss Fiducia Commercial Network or to apply to become an Appointed Representative email the team via by clicking this link.
For all media and marketing enquiries contact – pr@fiduciagroup.co.uk
