It’s a significant week for us at Capify, as we announce the launch of our new £50m Small Business Fund, which we have created to support SMEs that are in need of additional finance to kickstart their recovery.
Over the past decade, we have worked with thousands of small and medium-sized businesses, providing finance to support their growth plans. However, over the past 12-months, we’ve seen first-hand the devastating impact the coronavirus pandemic has had on the SME business community.
With the government outlining its roadmap to recovery, there is a renewed sense of optimism from businesses who are now looking towards the future once again. However, despite the numerous government-backed support schemes, we know finance still remains one of the biggest challenges for SMEs.
We want to do everything we can to support SMEs over the coming months and in their recovery. And that’s why we have decided to launch our Small Business Fund, focused on supporting SMEs across the UK.
The fund will offer loans up to £1m and will be open to businesses across a range of sectors that are already trading. We’re also proud to say that our lending criteria will take into consideration the challenges of the past year for each business, and support will also be offered to businesses that are preparing to reopen once lockdown restrictions are eased. For those businesses not open yet or about to reopen, they will be given the opportunity to register for the fund.
The latest government data suggests that more than 1.4 million loans have been given out since the start of the pandemic, but that number only represents a small percentage of UK businesses with more than six million private sector companies operating in 2020.
Additionally, in a survey we recently conducted we found that eighty-three per cent of UK SMEs are still actively looking for finance, with 43 per cent of these businesses stating the support offered by the government throughout the pandemic has not been good enough.
We’re already seeing increasing demand from SMEs across all sectors, and we expect this to continue as the economy begins to reopen and lockdown restrictions ease. The findings from our study also suggest that there is still plenty of optimism in the business community, with ambitions to expand or invest in new equipment, facilities or technology, but the next few months will be key.
Traditional banks continue to make it difficult for SMEs to get the finance they so desperately need to get back on their feet properly, which means that alternative lenders like ourselves will have a vital role to play in the economic recovery.
To find out more, or to apply for our Small Business Fund visit: capify.co.uk/50m-fund