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Alternative Finance Solutions to Help SMEs Survive the Fallout

The COVID-19 crisis has had a severe impact on the revenue of UK SMEs. Research shows UK SMEs are being paid much later than usual. As lack of cash flow affects the supply chain in a ripple effect, SMEs have been writing off tens of thousands of pounds since the very beginning of the COVID-19 pandemic.

According to a survey of 500 small businesses by Critical Research and on behalf of Bibby Financial Services, half of UK SMEs are receiving payments later than usual due to the crisis. Over a third reported being paid over a month later than their scheduled invoice due dates. While government schemes wrap, it's safe to assume SMEs are in dire need of cash. At this time, it is important SMEs know their options and explore alternative funding solutions to survive the downturn.

There are more funding and alternative funding solutions available now than ever before. TradeRiver caters specifically to the SME sector. Small to midsize companies rely on TradeRiver’s supply chain finance solutions for both buyers and sellers. During the pandemic, businesses can access funds to transform unpaid invoices into working capital, channel flexibility in their supply chain with a line of credit, fund speculative stock, make payroll -- it's up to them how they choose to use the cash injection.

We have seen differences in sector impact from the Coronavirus. For example, sectors most negatively impacted are those in construction, agriculture, and logistics. According to research by Mckinsey, more than 90 percent of surveyed SMEs in these sectors report reductions in revenue, while the least affected SMEs are those in scientific, finance and insurance, and education sectors.

We've also seen demand across industries looking for funding solutions to aid expansion efforts, invoice finance to smooth out cash flow, transitioning from brick and mortar to online e-commerce, and the manufacturing of PPE.

With looming uncertainty, now is a great time for SMEs to take advantage of the existing alternative funding options to remain afloat during the downturn. It's likely the businesses that will defy the odds and grow during the crisis are those who leverage their options including fintech solutions such as alternative finance offerings.


If you’re interested to learn more about any of our services, please contact us and one of our advisors will be in touch.

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