As the new year approaches, businesses need to stay updated on the latest industry trends to stay ahead of the curve. The year 2023 has brought about some of the most revolutionary changes in industries and businesses across the globe. These changes will not only take a front seat in 2024 but also pave the way for greater growth in the future.
One such aspect of the business world that is rapidly evolving is commercial financing. With a number of emerging business financing trends on the market, organisations across the world have the opportunity to leverage the power of finance.
However, to make the most out of these emerging trends, it is essential to understand how they can benefit your business and follow them closely. That’s why, to help you take your business to the next level, we bring you the top business financing trends to watch out for in 2024.
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Personalised Financing Solutions
After years of financing solutions that fit the needs of all businesses, recently the world of personalised finance is gaining momentum. As new and unique business models emerge on the market, their financing needs have also changed. Thereby demanding personalised business financing solutions.
As one of the most beneficial financing trends on this list, personalised financing is largely carried out by fintech companies. With the help of advanced algorithms, these organisations enable you to tailor a financing solution that works best for your business.
As one of the leading commercial finance brokers in Leicester, we offer our clients the opportunity to obtain reliable and flexible financing solutions. With everything from adjustable interest rates to customised repayment plans, our solutions are designed specifically for you.
Data-Driven Decision-Making
Regardless of whether you are a large corporation or a budding start-up, the 21st century demands the use of data in almost every aspect of operations. Similarly, with the increased use of data in business finance, credit assessment has become even more data-driven and accurate.
This new financing trend has introduced an added layer of metrics to the traditional credit score including transaction history, industry trends, debt-equity ratio and so much more.
Along with allowing lenders to analyse other business influencing factors during assessment, data-driven decision-making also helps regulate borrowers and prevent misrepresentation. Thus mitigating risk and encouraging fair trading practices.
Green Finance Initiatives
As the threat of global warming increases, the world is getting more and more concerned about environmental damage. This has given birth to one of the most impactful business financing trends ever - Green Finance.
With a number of investors and lenders offering financing solutions specially designed to encourage sustainability, eco-friendly businesses have found another source of funding.
Offering favourable terms and interest rates that help fund eco-conscious projects and organisations, these solutions have offered an incentive for businesses to become sustainable.
Furthermore, by offering a lower risk profile, increased access to Government incentives and a diversified portfolio, sustainable financing can also be beneficial to lenders and investors.
Debt vs. Equity
Opinions regarding debt and equity financing have been a major aspect of business finance. With changes in the economic conditions, investor behaviour and borrower needs, 2024 might encourage a more hybrid approach to debt and equity.
Hybrid financing models are becoming a popular financing trend offering the low risk that comes with debt financing and the high returns that come with equity financing.
Moreover, with the help of data-driven decision-making lenders and borrowers now have the opportunity to evaluate risk and returns in both cases more accurately. Thereby allowing them to make better financial decisions and effectively choose a suitable approach to financing.
Choose Knights Row for Reliable Business Financing
As we pave the way for the new year, it is evident that the future of finance looks promising. From revolutionary innovations to sustainable financing trends, the world of commercial finance can be extremely beneficial for budding businesses in 2024.
In the midst of the ever-evolving commercial finance market, we, at Knights Row, are always here for all your business financing needs. As one of the leading commercial finance brokers in Leicester, we offer a wide range of financing options tailored to your needs.
With an extensive network of lenders and financiers, we provide our clients with exclusive commercial financing options that may not be available elsewhere. What’s more, our professional team of finance experts ensures that you always get the most suitable financing for your business. From negotiating the best deals to ensuring all the paperwork is taken care of, we have got you covered.
To learn more about our property and business financing solutions, click here or get in touch with us now!