Platform Black was at Downing Street on Monday to hear Prime Minister David Cameron’s enterprise advisor, Lord Young, deliver his second report on ways to fire up business growth in the UK.

Crucially – and as anticipated – Lord Young identified the UK’s small businesses as being vital to the recovery of our economy. His aims include raising the aspirations and confidence of small businesses by giving them the tools and funding to grow. “There should be better marketing of government schemes to support new and developing businesses” he announced.

Our invitation to such an important financial gathering – and our name check in the report itself (p32) – is an endorsement of the Government’s continuing support for Alternative Finance. Micro-businesses make up 95% of UK Plc. and yet many are being held back by the lack of availability of credit.

As Colin Levins, our CEO, commented immediately after the launch: “Despite the Funding for Lending Scheme, the business credit pipeline is still badly blocked. Firms with the potential to grow – and take on new staff – simply cannot do so without access to funds, but the mainstream banks remain unable or unwilling to lend those funds. The government has realised that having a functioning, diverse supply of finance must be an integral part of its business strategy.”

We have highlighted many times how Britain’s small and medium sized businesses are becoming increasingly frustrated with their banks. Our survey last month revealed that more than three in five (62%) business owners felt their relationship with their bank had worsened over time. Many were scathing in their description of how their bank treats them, with 43% saying they were “frustrated” by their bank’s seeming inability to help.

So what is to be done about it?

Lord Young’s report highlighted specifically the battle to improve awareness of alternative sources of finance. To quote directly from it:

Small business survey data indicates that awareness of peer-to-peer funding amongst micro firms falls below that of other SME companies (27% compared to 35% and 45% for small and medium sized SMEs respectively). And micro firms are even less sighted when it comes to knowing where to find this type of finance – with 16% level of awareness amongst micro firms compared with 24% and 33% for small and medium sized firms respectively.

Well the industry is certainly doing its best to raise awareness and any help Lord Young can give will be appreciated.

Platform Black also backs the call for awareness of alternative funding to be raised amongst the intermediaries and advisers that micro businesses rely on for financial advice.

Optimistically, the Ernst and Young (E&Y) Item Club recently predicted that bank lending will increase in 2013 for the first time in four years. The forecasting group estimates that lending will rise by 3% to £440bn this year and by 8.5% to £447bn in 2014.

In E&Y’s recent survey of 370 firms, large companies confirmed they had seen an improvement in the availability of credit, but small firms, classified as businesses with a turnover below £1m, had seen deterioration. Medium-sized companies said access to borrowing was easier, but more expensive.

The E&Y survey is further proof, if further proof is needed, that small businesses are still struggling. The ‘Vital 95%’, as it has now been labeled, needs the support of the alternative finance industry to provide credit solutions and the alternative finance industry in turn needs the support of the government to grow.

The signs are looking good.

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BBC Radio – 14th May 2013

Louise Beaumont, co-founder of Platform Black, is interviewed on BBC Radio. She’s grilled on finance options for small and medium sized businesses, Lord Young’s latest report (Growing Your Business) and on what it takes to be an entrepreneur.

Colin Levins, CEO of the alternative finance provider for business, Platform Black, commented:

“Youth does not have a monopoly on creativity – or entrepreneurship.”

“Lord Young’s call for the over-30s to be eligible for start-up loans neatly identifies two issues – the high numbers of more experienced people seeking to go into business for themselves, and the banks’ continued reluctance to lend to new firms.

“His focus on micro-businesses is understandable and welcome. They make up 95% of British businesses, and yet many are being held back by the lack of availability of credit.

“Despite the Funding for Lending Scheme, the business credit pipeline is still badly blocked. Firms with the potential to grow – and take on new staff – simply cannot do so without access to funds. But the mainstream banks remain unable or unwilling to lend those funds, and the government has realised that having a functioning, diverse supply of finance must be an integral part of its business strategy.

“The Young report’s proposals to make it easier for small businesses to bid for public sector contracts will help level the playing field for some firms.

“But its most perceptive call is for the government to market the Business Bank better. Though it has yet to launch formally, the Business Bank will have a vital role to play in helping businesses thrive in an environment where conventional bank credit is seldom available.

“The dramatic growth in alternative finance for business, from crowdfunding invoice finance to peer-to-peer loans, is proof that businesses have already embraced this change. The government must catch up.”

For full report, click here

Star Radio’s Business Hub Show

Garry Mumford interviews Louise Beaumont as part of his ongoing investigation into alternative finance options for funding your business.

Transcript

By Sirena Bergman – 8th May 2013

A big concern for small business owners is often dealing with the logistics of how to go about employing staff, which is why we hosted a live Q&A to answer all your questions about learning to be an employer. However, we realised that a tricky part of the employment process is deciding when the best time is to take on new staff.

For full article, click here

By Judith Ugwumadu – 1st May 2013

Small firms are becoming more frustrated with their banks, according to a survey by Platform Black. The alternative finance provider said 60 per cent of the businesses questioned had been with their banks for more than 10 years but 38 per cent said they had requests for a loan or an overdraft rejected. A similar number complained they had seen their existing overdraft facility either withdrawn or reduced.

For full article, click here

Innovation is the new black. Thinking outside of the box is what is needed to pull Britain out of this recession and we like to think it played no small part in our development of Platform Black.

We are passionate about our mission to provide greater choice, flexibility and diversity in finance for small and medium sized businesses. As we seek to take our message out to the widest possible audience of businesses, introducers and investors, we have had to think laterally about how we do it. Like any other business, our budget has its limitations.

We have, therefore, been pleased to develop an innovative partnership with one of our early clients, Inteligis Group. Inteligis is behind Ingenious Britain – a campaign created for small businesses and their needs. The Ingenious Britain magazine is an integral part of the Sunday Telegraph’s business reporting.

Inteligis Group came to Platform Black with exactly the circumstances our service was designed for. The group’s clients are solid and dependable, but they are dictating ever tougher payment terms. Most won’t pay an invoice for 60 or even 90 days. As a small business without large cash reserves, keeping the cashflow in check is a constant challenge, so the ability for the directors to get their hands on cash quickly against invoices when the need arises is vital. This is exactly what Platform Black does.

Inteligis’ encouragement for new and alternative methods of small business finance and their quest for great business stories like Platform Black quickly showed that our shared values and passion for the fortunes of SME’s made for a stronger relationship than one of simple client and supplier.

Platform Black is excited by the rapid growth of the Ingenious Britain campaign and the way it is capturing the attention of British entrepreneurs and the media alike. Inteligis sees alternative finance as being at the heart of ‘new business normal’ – the revolution in the way businesses are now raising finance and running themselves.

We have resolved to campaign together.

Last week, we joined forces in a Q&A about Invoice Trading for Ingenious Britain’s followers on Twitter. Followers asked questions using the hashtag #IBAskPlatformBlack and our Chief Sales and Marketing Officer, Louise Beaumont was on hand to answer them. We will shortly be running a similar event using Google Hangout, which will provide an opportunity for even greater audience participation, including by video.

On Sunday, we were delighted to be the cover stars on the latest edition of The Sunday Telegraph’s Ingenious Britain magazine and to be featured extensively within it in an article by Alex Page on Confronting Cashflow.

Looking to the future, we will be doing more PR and social media together. You can look forward to guest posts from Ingenious Britain contributors on the Platform Black blog and our articles will appear on the Ingenious Britain website as we combine our resources to campaign for a better, fairer environment for Britain’s SMEs.

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Written by Alex Page
Published on Sunday 28 April 2013

How do you solve a problem like cashflow? Alex Page investigates.
When it comes to running a firm few things are more important than cashflow. The daily circulation of money is what keeps Britain’s SMEs going but in the years since the global slowdown access to capital has been cropping up as an issue on the business scene with increasing regularity. Organisations of all sizes are struggling to drum up cash, with HMV and Clintons Cards proving to be prime examples of high street giants that have fallen from previously strong positions.

For full article, click here

Written by Murdoch Mactaggart
Published on Sunday 28 April 2013

Cash is the lifeblood of any business and cash flow is critically important, although many small business owners still fail to realise that. Wages need to be paid, overheads met, and stock or raw materials bought. So however profitable a business might be, whatever its potential is, and whatever the value of its invoice book, it needs good liquidity to meet immediate costs. Without liquidity it will fail.

For full article, click here

Published on Friday, 26 April 2013

Survey finds nearly two thirds say the relationship with their bank had worsened over time.

Britain’s small and medium sized businesses are becoming increasingly frustrated with their banks, according to new research.

In a survey by Platform Black more than three in five (62%) business owners said their relationship with their bank had worsened over time.

For full article, click here