Funding Circle believes that small businesses are set to apply for more finance as they anticipate a post-Covid growth spurt in the year ahead.
The former peer-to-peer lending platform’s Small Business Insights, which was compiled from over 1,000 interviews with companies, has revealed that over half of business owners (59 per cent) are expecting an increase in business activity while only 10 per cent believe they will see a drop.
Funding Circle has predicted that more businesses will apply for finance to help them improve cashflow or invest in their business operations.
The report found that half of all small- and medium-sized enterprises (SMEs) rely on word of mouth marketing to grow, while 43 per cent use social media and 38 per cent use email marketing.
While 84 per cent said marketing is important, over a third of smaller businesses admitted they do not actively do any marketing. More than two-thirds (65 per cent) of these smaller SMEs said they do not feel the need to, while 23 per cent do not have the budget and 15 per cent lack the expertise.
Funding Circle’s report also showed the significance of technology in growth, with the majority of businesses (70 per cent) which are expecting a rise in trading saying technology was important, compared to fewer than 60 per cent among those predicting a decline.
“As the small business lending specialists, we’re always listening to business owners like you,” Lisa Jacobs (pictured), chief executive of Funding Circle, said in the report.
“We’ve dedicated the last ten years to making sure you feel supported and heard, and have the tools you need to make your business the best it can be.”