Funding for SMEs is out there, but accessing it can be tricky
Julie Cuthbertson, Business Funding Director, UMi
SMEs needn’t be detectives when it comes to finding the right funding.
With multiple funding avenues and advice channels available to business leaders, it can often be difficult for SMEs to determine the best funding option for them. SMEs across north east England play a vital role in driving innovation, creating jobs, and fostering economic growth. Despite their significance, one recurring theme I have observed throughout my 22-year career working with regional SMEs is the numerous hurdles business owners face in accessing the financial support they need to thrive. For many, it’s a hurdle too large to even try and tackle, but it shouldn’t have to be.
We recognise how complex and overwhelming accessing finance can be for business owners, especially in today’s climate. SMEs in particular have been faced with a raft of cost increases over the last 12 months — from rising wages, to soaring input costs — with little wiggle room to absorb them. Many, still grappling with the effects of the pandemic and inflation, now face new cost pressures following October's Autumn Budget which set out increases across employer National Insurance, capital gains tax, and the national living wage.
There isn’t a one solution fits all when it comes to business financing. They all have different needs and it is crucial that business owners understand and secure the right finance type for their business plans. However, many are not adequately prepared to make the right decisions about financial products to best suit their unique circumstances and require tailored advice and relevant products to maximise their growth potential.
Over the years, I have repeatedly seen SMEs in the north east struggle to access funding, but it is out there. From grant funding to equity investment, there are numerous options available to help your business, and so it comes as no surprise that 60% of businesses state that lack of awareness is their main barrier to finance. The north east in particular offers a variety of fantastic initiatives that help towards the cost of improving or growing your business. Durham Business Growth, Northumberland Small Business Service and Business Growth Fund are just some of the programmes we currently support.
This adds to the experience of past programmes UMi has supported, which span the entire UK. Since 2007, UMi has supported more than 630,000 businesses, defrayed £325 million in grants and loans, and leveraged £640 million in private sector investment.
Without doubt, various measures are required to improve accessibility to finance for SMEs. In order to address this challenge and help businesses thrive in an increasingly challenging climate, we are calling for a more seamless approach to funding with the launch of Get Funding - a one stop shop for north east businesses looking to receive funding, whether that’s grants, finance, or investment.
This innovative service creates a convenient place for businesses across the UK to turn to and find the best solution for their funding needs. By harnessing UMi’s experience with managing support programmes, its connections to finance providers, and a UK wide investment network, businesses will be able to access it all with the help of a dedicated Business Funding Adviser who will be by their side throughout the entire journey.
Ahead of its launch in January, we are giving business owners looking for practical growth solutions, the opportunity to sign up to our Get Funding webinar series, taking place from December to April 2025 – with the first, focusing on securing business funding, coming up on the 2nd December. The series will cover topics ranging from how to access funding more easily, to understanding financial bottlenecks that can hinder business performance.
We all need to rally around our SME community to offer the advice, backing and environment that will create a meaningful platform for growth. Through this initiative, we will be able to offer a much stronger suite of support, making it easier for SMEs to understand and access the best funding opportunities for them. Giving businesses easier access to finance is crucial to getting the economic growth we all want to see and tailored financial solutions paired with targeted financial guidance can truly make a difference.
More details about each webinar series and how to sign up can be found here.