Small and medium sized business SMEs in the UK are increasingly turning to alternative forms of finance to fuel operations, with the use of credit cards growing.
Personal savings and credit cards are becoming more common forms of SME capital, findings from Western Union show. The money transfer services International Trade Monitor reveals that access to credit continues to be a worry for SMEs, with 30 per cent saying that its is a top concern.
The research also finds that 21 per cent are turning away from banks and actively considering alternative forms of finance. A survey breakdown reveals that the top three sources of funding being considered are asset-based finance 44 per cent, factoring account receivables 31 per cent and personal savings 26 per cent.
Furthermore, some 20 per cent of SMEs surveyed are looking beyond these three options by utilising credit cards. Of those questioned, one in ten have already used the practice.
via SMEs turn to credit cards and personal savings to balance the books.
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