According to the recently released SME Finance Monitor, only
two thirds of small firms (those with fewer than 10 employees) are getting the
finance they need, leaving a third being turned down when they apply for loans.
However, the news for small firms is worse than this statistic suggests, as half surveyed said they wouldn’t even apply for a loan in the first place. Well why? This is because they believe they will simply be turned down in any case.
Old style branch banking has disappeared and this has not helped together with a widespread distrust of the larger banking institutions.
How do these firms survive meanwhile? Are they relying on other sources of finance, including factoring and leasing? – plus extended payment terms too – of course they are.
The downside – watch out these SMEs may be using your credit line as a bank!
For further information/advice on this topic please visit www.wardwilliams.co.uk
However, the news for small firms is worse than this statistic suggests, as half surveyed said they wouldn’t even apply for a loan in the first place. Well why? This is because they believe they will simply be turned down in any case.
Old style branch banking has disappeared and this has not helped together with a widespread distrust of the larger banking institutions.
How do these firms survive meanwhile? Are they relying on other sources of finance, including factoring and leasing? – plus extended payment terms too – of course they are.
The downside – watch out these SMEs may be using your credit line as a bank!
For further information/advice on this topic please visit www.wardwilliams.co.uk
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