According to a new research, almost a third of UK small- and medium-sized enterprises have found it harder to access finance over the past 12 months.
Purbeck Insurance Services commissioned a Censuswide Survey of 500 owners and directors of UK SMEs. 56% said the ability to access finance had stayed the same over the past year, while just 14% said it had become easier. Meanwhile, business conditions appear to be worsening for SMEs. Two thirds of respondents said they had increasing uncertainty about the economy, while 59% said exchange rate volatility had made their business harder.
“Access to funding is also major challenge for smaller businesses deemed to be a bigger risk to traditional lenders – this is despite a government initiative to ease the issue through the Bank Referral Scheme. When funding becomes a problem, cashflow dries up and late payment increases, creating a vicious circle where SMEs aren’t paid so stall payments themselves. However, there are an increasing number of options available outside of traditional lenders so it’s vital they access expert advice to work out which finance solution is right for their business”, said Todd Davison, Director of Purbeck Insurance Services.
Author: Suzie Neuwirth
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Source: Peer2Peer Finance News