Credit “Unaffordable” Say SMEs

It has not been easy for small businesses to find finance. In recent years, high street banks have cut back on lending and small business have struggled in their efforts to facilitate business growth. As the country edges closer towards the Brexit deadline, sustaining business prosperity has become more important. If firms cannot locate finance, the future of the economy as a whole could be under threat.

The FSB conducted a survey into small business finances back in July, where 42% declared new credit to be “unaffordable” in the third quarter of 2018. Less than a quarter expressed a positive attitude towards new finance, with high street lenders no longer a viable option for many on account of low acceptance rates.

Alternative finance has jumped to fill the gap, offering small firms a more innovative attitude and community-driven environment. Many of the consequent financial practices, such as crowdfunding and peer-to-peer funding, have recently been exposed to intense scrutiny and have demanded urgent regulation.