Latest statistics show the overwhelming majority of smaller businesses that applied for finance in the first six months of 2018 were successful.
Research commissioned by trade body UK Finance for its SME Finance Monitor Q2 2018 found that 85% of small businesses in the UK were able to secure finance during the first half of the year. Around six in ten SMEs also reported that they had a high level of trust in their main bank.
However, 73% of small businesses stated that they would rather grow their business slowly than borrow to grow more rapidly. Nearly half (48%) also said they were reluctant to borrow in the current climate.
Overall, SME owners said the main barriers to running their business were legislation and regulation (18%), political uncertainty (16%) and the current economic climate (15%).
Stephen Pegge, Director of Commercial Finance at UK Finance, said the figures show SMEs “should be confident” when approaching their bank to seek finance, but acknowledged that the: “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”, he said.
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