Statistics show that the overwhelming majority (85%) of small businesses that applied for finance in the first six months of 2018 were successful.
UK Finance commissioned the market research firm BDRC to carry out its SME Finance Monitor Q2 2018 and in the same study found that around six in 10 SMEs have a high level of trust in their main bank.
Stephen Pegge, director of commercial finance at UK Finance, said the figures show that SMEs “should be confident” when approaching their ban
Despite the high number of successful applications however, 73% of small businesses still say that they would rather grow their business slowly than borrow to grow quickly.
Businesses that are expecting to seek finance in the future are taking a cautious approach, with 48% saying they’re reluctant to borrow in the current climate.
Overall, SME owners say the main barriers to running their business are legislation and regulation (18%), political uncertainty (16%) and the current economic climate (15%).
“Overall appetite for finance among SMEs remains subdued, with many reluctant to borrow.
Legislation and red tape, political uncertainty and the current economic climate are all increasingly cited as issues holding SMEs back, while only one in 20 see access to finance as a major barrier.”
“This underlines the importance of the Government, finance industry and regulators continuing to work together to address these issues.”
Do I qualify for business funding?
Whether you qualify for business funding will be assessed on a case-by-case basis. This is something you can speak to your lender about or the team here at PKB is more than happy to help.
How do I apply for business funding?
In order to apply for business funding you will need to put together a business plan, present your cashflow/profit forecast to your lender and show what your plan will achieve.
If you would like to find out more about this, please get in touch with our director, Yvonne Miles. Yvonne heads up our audit function and will be able to answer any queries you may have.
If you would like to discuss your business’s financial standing or the different funding options available to you, please feel free to contact PKB about our management accounting services and a member of the team will be more than happy to help.