One of the biggest challenges faced by SMEs is raising funds. The need for funds becomes inevitable after a certain point of time for the business to grow further. However, securing additional funds is not so easy, especially for small and medium sized businesses. There are plenty of hurdles faced due to various reasons.
What are the factors that make it difficult for SMEs to raise funds?
· SMEs are viewed as a less attractive investment opportunity by investors as, with any new business, the level of risk and uncertainty is quite high.
· The limited track record of the functioning of the company and providing suitable returns to the investors works against them.
· With many SMEs the operations are not finetuned and the company may also have limited internal controls.
· Authority could be in the hands of a single dominant owner/manager whose decisions may not always be welcome.
· In terms of security, SMEs face another challenge as they own few tangible assets that could be offered as security.
Lack of finance is a major hindrance that stops SMEs from growing to their full potential. There is always a gap between the available funds and the required finance they could productively use.
Seeking financial support through the traditional banking route or through individual investors can often get tedious and not bring in additional support. However, an investment company may be able to extend such support when required.
Premier Pioneer Group is a multi-disciplined holding and investment company that backs small to medium-sized UK businesses that are unable to realise their full potential without urgent financial assistance. As well as cash flow, the companies can also benefit from high-level management experience and hands-on support, helping to stimulate growth and create significant value. If you are looking for SME funding in Portsmouth, UK
do not hesitate to get in touch with us.