KPMG has launched KPMG Enterprise Financing. This new venture aims to support SMEs seeking new debt finance or refinance for totals between £2m and £10m and will sit alongside the firm’s debt advisory expertise.
It is heartening to see the Big Four accountancy firm join the diverse and growing list of financing opportunities now available to SMEs, which make up 99% of the UK economy. The offering will challenge the burgeoning top end broker market, as well as compete with the new forms of alternative finance that have appeared in the UK over the last decade.
Since the financial crisis of 2007/8, we have seen a dramatic shift in the UK funding landscape, with a move away from an old-fashioned, bank-centric model towards a diverse, innovative, technology-led approach. This has led to growth in UK debt markets, liquidity for borrowers and investment opportunities for lenders and the platforms that service them. Clearly KPMG recognise this and have decided to join the fray.
We expect this move to accelerate the trend towards small and mid-market accountancy firms offering a broader range of advisory services. By helping clients to obtain flexible and affordable financing, accountants can remain relevant to clients and compete with full-service firms. For many accountants this is old news. For others, it’s a wake up call.
It’s positive to see a firm like KPMG enter the SME funding market and drive growth in our thriving industry from the top down. However, KPMG’s new offering only caters to a fraction of the UK business community.
Average turnover for British businesses hovers around the £500,000 mark, and according to the BBA, the average loan value approved for smaller businesses in Q4 2016 was £72,672, while the average for medium sized businesses rose to £440,995.
At Capitalise.com, we enable SMEs, seeking between £25k and £2m, and their advisers to find, compare and select matching lenders. By extension, we’re able to help the majority of UK accountancy firms, too, allowing them to effortlessly innovate and diversify their offering to clients by leveraging our platform. Accountants and advisors that use Capitalise.com are able to grow alongside their clients by helping them to obtain the funding they need.
