The inability to access working capital is not just a problem suffered by small business owners in the United States. SMEs in the U.K. are encountering the same obstacles in securing funding for their businesses as their American counterparts.
That’s why we created Boost Capital. Beginning last summer, we offered our financing solutions to SMEs in the U.K. on a trial basis through Boost Capital. We saw a need and wanted to help. In fact, more than a third of the 5 million SMEs in the U.K. expect to use external capital to grow their businesses this year. And, with over a million U.K. SMEs being turned down for capital on their first bank loan application, we decided to enter the market to try to close the business funding gap and provide SMEs with the working capital they need to grow.
With overwhelming support, drawing on more than 10 years of experience in the U.S., we have decided to stake our claim in the U.K. funding space. After all, SMEs in the U.K. have the same goal as small business owners in America – growth – as well as the common challenge – securing capital.
When we launched BFS in 2002, we began by providing financing to businesses that were being denied loans from traditional lenders. Since that time, we have seen a shift in the types of merchants we fund in the U.S. and their reasons for needing business financing. More and more, we are seeing businesses that can and do qualify for bank loans but that are simply unable to wait months for the capital they need.
The American businesses we finance use our capital to renovate, replenish inventory, invest in marketing or just provide a cash flow a cushion during slower seasons. And, we are optimistic that we will see similar results in the U.K.
An influx of working capital can sometimes make or break a business. Whether an SME is unable to obtain a conventional loan from the bank or they need access to funding quicker than the banks can provide, funding from Boost Capital may be exactly the financing solution a U.K. business owner needs.
According to Marc Glazer, CEO of both Boost Capital and Business Financial Services,
“So many of the U.K.’s SMEs are struggling to get funding via traditional lenders. Despite government proposals intended to help, we have yet to see any significant impact. We believe it is essential that SMEs with growth potential have access to financing – without a prolonged, difficult process. That’s why our goal is to provide capital in as few as five business days.”
Check out the video below to hear Marc Glazer speak about Boost Capital:
While neither company funds start-ups, we aim to finance high-growth enterprises that are in the earlier stages of business. Banks, both in the U.S. and in the U.K., typically consider these types of businesses high-risk, whether it’s because they have poor credit or lack substantial financial history. Banks are concerned with how they can protect their losses. That’s where the difference lies. Both at Boost Capital and at Business Financial Services, we look at the overall financial health and stability of a business and what their growth opportunities are.
We truly look at the merchants we fund, regardless of where they are located, as our business partners. If a business needs access to capital to grow, then we can be a great partner for them. At the end of the day, we are small business champions, and our main goal is to help small business owners survive and thrive.
If you want to learn more about Boost Capital or about Business Financial Services, we’d love to hear from you. Drop us a line or give us a call; a member of our team is available to answer any questions that you may have.
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