Financial knowledge

There are many skills that small business owners must have to successfully run their company. One of the most important - especially in the current economic climate - is having a good understanding of finance.

Recent research by Bibby Financial Services revealed that nine out of ten financial advisers have rated small businesses' understanding of the range of finance options available to them as 'average' or below.

This is an increase of 14% from last year's survey, and an increase of 18% on 2007's. With SMEs finding access to finance through banks difficult - there is a myriad of survey's showing such data - it is vital that small firms are aware of all the different schemes in place.

The Loan Guarantee Scheme and the Enterprise Finance Guarantee scheme are just two ways that businesses can access finance. While evidence has shown that funding is still difficult to be obtained through these schemes, business owners must still have a knowledge of all the different measures that are in place. By applying for such schemes there is a chance that extra funding may be obtained; those firms that don't even know about the schemes have no chance.

As Edward Rimmer from Bibby says: "It is evident that not only is there a lack of knowledge among small and medium sized firms with regard to accessing finance, but that the range of options available to businesses is perceived as limited, and this is certainly a cause for concern."

All company owners must ensure that they have a good understanding of the options that are available to provide extra finance to their firms.





Post Date: November 27th, 2009