UK’s Small and Medium-sized Enterprises (SMEs) could gain approximately £5 billion in credit annually by addressing simple issues in their credit profiles. A recent study by CFIT and FXE Technologies reveals this startling fact. It also underscores the urgent need for innovative digital fundability tools. These tools can help rectify these issues and increase SMEs’ chances of securing crucial credit.
Mistakes and oversights in credit profiles primarily cause the annual credit deficit. SMEs often overlook these easily fixable issues, which leads to lower credit scores and, consequently, less access to credit. As a result, their ability to invest, grow, and contribute to the UK economy suffers.
Interestingly, the report suggests using digital fundability tools to address these issues. Such tools can help SMEs identify and rectify errors in their credit profiles, thereby improving their creditworthiness. Moreover, they provide guidance on the credit application process, thereby increasing the likelihood of successful applications.
Unlocking the Potential of SME Credit
By addressing these credit profile issues, SMEs could unlock a potential £5 billion in additional credit. This would significantly enhance their growth and innovation capacity. Moreover, it could also positively impact the overall health and growth of the UK economy.
Fintech companies, such as CFIT and FXE Technologies, provide a solution to this issue. They are at the forefront of creating digital fundability tools designed to simplify the credit application process. This makes it easier for SMEs to secure the funding they need by identifying potential issues in credit profiles and providing actionable advice on how to resolve them.
As a result, SMEs can improve their credit scores, thereby increasing their chances of obtaining crucial funding. This is not just a win for individual businesses, but also for the broader economy. An increase in SME credit accessibility can stimulate business growth and, subsequently, boost economic activity.
As the fintech sector continues to grow and innovate, it will be interesting to watch the evolution of these digital fundability tools and their impact on SME credit accessibility. Clearly, with the right tools and guidance, SMEs have the potential to unlock significant funding. This can fuel their own growth and contribute to the UK’s economic recovery.
