For a while now, small and medium-sized businesses (SMEs) have had a hard time getting money from banks. Because of this, many have had to go to other lenders and sources to get the much-needed money for their business investments.
A new study has found that almost three-quarters of SMEs believe that their bank actively discriminates against them in favour of lending to larger companies.
Independent polling agency, Censuswide, surveyed 500 UK SME owners to explore whether they had access to finance and sufficient support from their bank.
Whilst the headline figure on lending is concerning, what stood out significantly was the seeming reluctance of banks to back SMEs’ plans for growth.
Perhaps that is why the initial headline figure on bank lending and support is so worrying to many business owners.
Higher interest rates and more cautious lenders have resulted in many businesses struggling to access funding, especially from banks, as this study has shown.
A traditional bank loan is only one means of obtaining the funding required to meet your investment plans and there are several other sources that owners can consider.
These include, but are not limited to:
- Venture capital investment, including tax-efficient EIS and SEIS funding
- Peer-to-peer finance
- Pitch events
Each of these methods to get money for your business has its pros and cons, so you need to think about them carefully. If you’re having trouble finding money for your business plan, it’s important to get help from a professional. They can help you understand the different choices you have.
Speak to our team today to find out how we can help you with your plans for growth and investment.