Why a different approach to funding can pay dividends.

Access to finance is critical for businesses aiming to move their businesses forward but are still facing into economic headwinds. Business confidence is on the rise, and with it is a keenness by business owners to capitalise on growth opportunities as and when they arise.

So, the latest figures released by UK Finance were an interesting read.  They show that lending to SMEs has dropped for the third year running with gross lending down 22% in 2023 on the previous year. That is a significant figure.  UK Finance argue that “demand uncertainty, higher interest rates and the impact of lending taken out during the pandemic” are the cause of this weakness last year, whilst at the same time high street banks are facing criticism for pulling back from small business lending.  

It’s no surprise then that businesses have been increasingly reliant on alternative lenders in recent years, with 59% of SME lending now coming from outside the big banks.

As an alternative funder, we believe that this is because, we offer a different approach.  We don’t just sign up another business to a finance product.  We adopt and encourage a client focussed attitude throughout our teams and our business.  Its shows up in the time we allocate to getting to know how the business works, their current challenges, the owners, or managers ambitions and what they want their funding package to achieve.  It is only by doing this that a funder can truly deliver a funding package that is relevant and effective.  

Our experience over the last twelve months is that more UK businesses are looking for funding solutions to support their whole business from the front end right through to the back end. Integrating funding solutions across a business can be critical to its success.  And so, our investment has been positioned to develop our solutions to help us support UK businesses to structure a solution that works for them.

Invoice Finance is a proven valuable tool, injecting cash into a business to improve cashflow and support growth.  In addition to this we aim to deliver something more – which is why we launched Strategic Finance in 2023.  A package of funding that supports a business throughout the business funding cycle.  It enables UK firms to access bespoke funding facilities upwards of £5m.  Clients will be seeking growth capital and dependent upon their requirements we will tailor a deal that works for their business.  It will always include a receivables facility where we are providing capital against the book debt.  In addition to this, it will most likely include some form of Trade Finance facility – either via a purchase order or a revolving stock facility.  The aim is to provide scalable and tailored finance for businesses with ambitious growth plans.  We pride ourselves in leveraging innovative thinking to improve accessibility and mitigate risks for both our clients and ourselves as a funder.

These complex deals need a personalised service, and clients expect access to decision makers which is why we guarantee a dedicated team who work with our clients and their advisors.  Our honest and straight forward attitude means that communication is clear and decisions are made quickly.  By integrating different funding solutions across your business and aligning them with your strategic objectives, you can enhance financial stability, fuel growth, and position your business for long-term success.

Strategic Finance gives businesses clarity and flexibility on funding and is tailored to the specific needs of our client’s business.  Our funding solutions mean that they can support their growth whilst our personalised service stays close and is responsive to changing dynamics that our clients will need us to adapt to.  Overall, a solution which can make a significant difference to a company’s outlook.  

We were delighted to support a £24m turnover business involved in the design and manufacture of cosmetics.  Creating products overseas and selling them to international companies has been very successful for the firm and they have grown exponentially.  They felt that the support from their incumbent funder had declined, and they were not making an effort to understand and work with their growing business.  They had previously worked with our Head of Strategic Finance – Siouxsie Ashmore – and so reached out to her to see if Pulse could help.  We put together a £6.5m facility which supported the upfront purchase of finished goods whilst providing the cashflow to grow their customer base internationally.

Smart finance solutions can serve as a potent catalyst for business growth, providing the necessary fuel to propel business forward.