UK SMEs plan to increase their borrowing to capitalise on summer spending, according to research from Nucleus Commercial Finance.
Summer was considered the most important season for 21% of SMEs, with 40% expecting their income to increase over this period.
For those businesses that believe summer is the key season, 56% plan on accessing alternative finance to capitalise on the opportunity a busy summer provides. The top three reasons for this are:
To expand across the UK over the summer – 19%
To increase staff count (17%)
To launch new products or services (13%)
Nucleus Commercial Finance, a provider of finance for SMEs, found that other uses of alternative finance for businesses include moving to larger premises (12%), expanding into new international markets (9%) and trading internationally for the first time (4%).
Chirag Shah, chief executive, Nucleus Commercial Finance, said: “Despite a tough economic environment, SMEs still have ambitious plans this summer, with many planning on accessing additional finance to support their business. This finance is enabling small businesses to maximise on the opportunities the summer provides, whether that be to expand across the country, increase their staff count or launch new products and services.
“SMEs play a vital role in the UK economy and ensuring they have access to finance that can enable their growth is paramount. At Nucleus, we’re committed to helping small businesses invest in their future so that they can thrive in today’s competitive landscape.”