SMEs Struggle To Get Funding, Says New Survey

More than half of small and medium-sized enterprises (SMEs) in the UK are struggling to get the funding they need, according to new figures.

A new survey conducted by merchant bank Close Brothers found that only four out of ten SMEs have been able to secure funding from their chosen lender.

Of the respondents approached for the survey,  34 percent felt that the capital available to them wasn’t enough to fund their investment plans, while a further 24 percent said that the type of funding they had used was too expensive.

Access to sufficient capital is vital for businesses looking to grow and expand. Funding is needed for staff training, investing in new technologies and renovating premises.

However, many SMEs are unsure how to deploy capital they have borrowed.

26 percent of those approached for the survey expressed uncertainty with how to use the funding they do receive.

Adrian Sainsbury, banking division managing director at Close Brothers insists that it is “crucial” that SMEs find funding through new technologies and alternative finance options.

However, this isn’t always a viable option for SMEs, with a growing minority of small businesses remaining unsure- or unwilling- to embrace a digitised environment. Please see our previous news post on the UK’s digital deficit here

This indicates how many require additional support, ensuring any new finance or products they receive from a new lender align with their business strategies and expansion goals.

James Salmon from The Credit Protection Association says the first step for any SME experiencing funding difficulties is to realise the cash sitting on their balance sheet. If you have debtors who are overdue in paying you then collecting those payments can give an immediate boost to cash flow. We, of course, will be happy to help; contact us for advice and swift action!

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