BUSINESSES are facing a funding challenge with more than four in five credit brokers reporting that high-street banks are reducing their appetite for funding SMEs, according to the latest edition of the SME Index Data report.

At the same time, 43% of SMEs believed that their need for external finance had increased compared to six months previously, but more than half are finding it harder to access the finance they wanted.

There are funding options open through dealers, including the highly regarded VAT Assist option for LCVs, which has proved a big hit in helping businesses manage their cash flow. The flexibility also extends to vehicle age and fleet size, with businesses able to fund a fleet from one vehicle upwards.

Some 7,000 thousand SMEs have now been helped by MotoNovo Finance’s fleet funding service, which supports dealers to provide new and used cars and LCVs to business customers. Access to this money is invaluable as the broader funding market for SMEs has become increasingly constrained.

MotoNovo’s Commercial Sales Director, Debbie McKay said: “It is obvious that accessing funding has become an increasing challenge for SMEs, and this can be an issue for dealers, especially for businesses looking to expand or replace part or all of their fleet. It is a niche where we have expertise and have proved we can help. By enabling us to fund their vehicles, businesses can use other funding options to support their other needs. Sharing the funding load is proving to be invaluable.”