Small businesses are continuing to bear the brunt of low bank confidence, new research has revealed today, as almost half of all small businesses are being rejected on their first application for business finance.
The findings of a large poll of approximately 20,000 small businesses indicated that, since January 2010, 49% had been turned down for a business loan or overdraft on their first attempt.
Consequently, one in four businesses had seen ‘personal funds’ invested to ensure they continued to trade.
Further striking evidence showed that the amount of small businesses being rejected for an overdraft has increased from 15% between July and September 2010 to 33% between April and June 2012.
The British Chambers of Commerce director of policy, Dr Adam Marshall, expressed his concern at the chances of small businesses getting funded, “There are still serious obstacles for many companies seeking external finance.”
What other Business Finance solutions exist?
As many start-ups, small businesses and SMEs continue to face major hurdles to get access to external funding through traditional funding houses, it often makes sense to explore the other alternatives out there.
One increasingly popular solution is invoice finance, which can help businesses release cash they have tied up in unpaid invoices.
Invoice factoring and invoice discounting are two forms of invoice finance which have helped thousands of businesses up and down the country to release the cash they have earned but, due to late payment culture, would otherwise not get their hands on for two or three months.
Skipton Business Finance can tailor flexible solutions around your business finance requirements, so why not browse our website today and see just what we can offer your business.
Although Skipton Business Finance is an undoubted financial institution, we are not a high-street bank. We're owned by a mutual building society which gives us a completely different ethos to our competitors.