In a recent survey commissioned by the LDF Group, 30% of small to medium businesses claimed not taking funding in time or not taking funding at all to be their poorest financial decision in the past 12 months. A further 15% admitted not taking enough funding was their poorest decision in the same period.
Misconceptions regarding taking out finance are having a large negative impact on the economy and potentially stunting the growth of UK businesses. In the same survey, 86% of those who have negative opinions regarding business finance believe it signifies a business struggling to make ends meet, business failure or cash flow issues. Perhaps surprisingly, the majority of business owners who hold a negative opinion are aged between 16 and 34. Conversely, those 35 and over believe finance to be a necessary and normal part of effectively managing their business.
Getting a traditional business loan can be a long and frustrating process. For many people, the gain just doesn’t outweigh the pain. So, it’s no surprise that British small businesses are underfunded by a whopping £35bn: because they apply for funding less often than they could and don't apply at all. That means many firms are missing out on funds to smooth cash flow, renew vital business equipment and support expansion plans.
One way in which businesses are using finance to grow is facilities such as the LDF Business Development Loan. Designed with smaller businesses in mind, our customers use this option when they’re looking to develop their business – for example by undertaking renovations and refurbishment, increasing their marketing activity or even acquiring a new business or buying out a partner. But there are some out of the box ideas... such as a modular mobile ninja assault course and segways.
British small businesses are underfunded
by a whopping £35bn.
Based in Cheshire, Extreme Adventure specialise in a range of mobile adrenaline activities. With over 10 years’ experience in the industry, the family owned business strives to bring the thrill of adventure direct to its clients.
Striving for a unique edge, Extreme Adventure continually delivers new products and services to their customers, from assault courses and segways to the first ever modular Mobile High Ropes course (patent pending). The company's most successful creation to date is the Bubble Rush, a 5km charity fun run with a twist!
To continue to meet the growing demand for new adrenaline adventures, director, Andrew Caldwell, approached LDF as an alternative source of finance to fund the new kit needed to turn his vision into a reality.
Using the LDF Business Development Loan, Extreme began to broaden its already diverse product range, including a ninja assault course, customer transport vehicles, mobile high ropes and vehicle simulators, plus a stunt bag purchased from America. Thanks to our finance solutions, Extreme Adventure now offers an expanded selection of products, which have in turn helped to significantly increase both profits and turnover. The company's visibility within the industry has been widened with the rapid success of the Bubble Rush, which is now one of the largest events used by UK charities up and down the country.
As Diana Caldwell, director at Extreme Adventure, explained, “LDF are always keen to discuss the options available to us, and to find a solution for any purchases that we require to evolve our new projects – no matter how unusual!”
Peter Alderson, managing director at LDF, says, “Small businesses should no longer be asking why they should invest in their business; they should now be asking where to invest in their business.”