SMEs ‘want to borrow, but lack the confidence’

  One in five SMEs say they would like to apply for lending in the future, but doubts about the current economic climate will stop one in eight from doing so, according to research from BDRC Continental.   In the latest instalment of its SME Finance Monitor, the brand found that 19% of those surveyedRead More

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One in five SMEs say they would like to apply for lending in the future, but doubts about the current economic climate will stop one in eight from doing so, according to research from BDRC Continental.


 

In the latest instalment of its SME Finance Monitor, the brand found that 19% of those surveyed fall under the classification of ‘future would-be seeker’.

 

This means that, in the future, they would like to be able to seek out borrowing, but probably will not do so.

 

Around two thirds of future would-be seekers, equivalent to 12% of all SMEs, cited doubts about the economic climate as their main barrier to borrowing.

 

Shiona Davies, director at BDRC Continental, says: “Whilst we are seeing signs of SMEs retrenching in terms of their use of external finance and the increasing obstacle of the current economic climate for those wanting to seek finance, there are also some positive signs.”

 

These include maintained expectations on growth and profitability, growing awareness of the Funding for Lending scheme throughout the UK, and the chance to create a greater level of confidence if more small businesses can be made aware of the current 70% approval rate for those who seek to access the scheme.

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