Time Finance has called for increased investment in UK small and medium-sized enterprises (SMEs), warning that fiscal stability alone will not deliver economic growth.
Ed Rimmer, Chief Executive of Time Finance, said businesses need access to funding and working capital to manage rising costs, invest in operations and expand.
The Autumn Budget included measures to ease pressure on businesses, including targeted energy cost support and changes to business rates. However, Time Finance said the benefits will depend on how quickly these measures translate into lower operating costs.
Energy-intensive businesses could benefit from the extension of support, but persistent inflation and borrowing costs continue to put pressure on cash flow. Access to flexible finance will remain important for businesses facing unexpected cost increases while trying to maintain investment plans.
Changes to business rates, including raising the threshold to £18,000, are also intended to reduce costs for smaller businesses operating from physical premises. However, Time Finance said rate relief alone would not be sufficient to support high street recovery.
Stronger consumer demand and regional economic growth will also be needed to support smaller businesses and encourage further investment.
Regional funding commitments involving the British Business Bank and National Wealth Fund could provide additional opportunities for businesses outside London. Time Finance said smaller companies need to be able to access working capital to fund equipment purchases, recruit staff and enter new markets.
Access to finance remains a major barrier to SME growth. Businesses may have expansion plans and customer demand but lack the working capital needed to put those plans into action while meeting everyday costs. Tailored funding solutions can help bridge this gap, allowing businesses to invest without placing additional pressure on their day-to-day finances.
Time Finance said the success of the Budget should be measured by whether businesses receive the funding and support needed to invest and expand, rather than simply their ability to manage economic pressures.
Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
