Applications by SMEs for bank loans across Europe are becoming increasingly more likely to be rejected, according to new figures released by Eurostat, the statistical office of the European Union (EU).
The proportion of unsuccessful loan applications rose in 19 of the 20 Member States of the EU between the years 2007 and 2010. Only Sweden saw a reduction in the amount of unsuccessful applications.
The UK was found to have one of the highest rates of unsuccessful applications, with 21% of applications being rejected. Across the waters in Ireland, the rate was 27%, whilst Finnish SMEs may not have such problems in accessing finance, with only 0.2% of their loan applications being turned down.
The bad news was acknowledged by the European Commission of Enterprise and Industry, which stated that economic crisis and instability of the last few years has undoubtedly made it harder for SMEs to access banking credit.
Invoice Finance a potential solution?
If you’re an SME and are having problems access banking credit or has recently been turned down for a bank loan, have you considered other financial options?
We are increasingly finding that businesses turned down for bank loans are suitable for invoice finance.
Maybe an invoice finance solution, such as invoice factoring or invoice discounting, could help provide a much-needed cashflow boost to your business.
Why not get in contact with Skipton Business Finance today to discuss whether we may be able to get your business really thriving again.