According to the latest research, finding alternative methods of finance could be key to the future of the manufacturing sector in the UK.
Recent figures have shown that manufacturer’s orders are down, but this is contrasted by the fact that if current growth trends continue, then the UK will become one of the top five manufacturing nations by 2021.
Currently, manufacturing makes up 11 per cent of gross value added, 44 per cent of total UK exports, 70 per cent of business research and development (RD) and directly employs 2.6 million people.
However, access to finance can be restrictive for smaller and younger firms that often do not have the order book history or the collateral to be an attractive proposition for traditional lenders such as banks.
Alternative lenders, on the other hand, are less constrained by banking regulations and often have hands-on knowledge of the sectors they lend to, which allows them to make informed decisions on loans.
Many of these lenders will consider applications from new firms based on forecasts rather than a trading history, meaning that even those with a short track record can finance their aspirations for growth.
Alternative lenders generally use sophisticated technology platforms that will quickly allow them to tell prospective customers whether or not they qualify, which saves time for both parties.
Nigel Fry, General Practice Partner at Milsted Langdon, said: “It’s important for firms to explore all financing options, as it may not be the traditional route that is the most suitable for your business.
“For help and advice on matters relating to corporate finance, contact our expert team at Milsted Langdon today.”