85 per cent of SMEs who applied for finance were successful in the year to June 2018, according to BDRC's latest SME Finance Monitor for Q2 2018. 

The survey also revealed that in the first half of 2018, 31 per cent of SMEs rated one or more of the following as a major obstacle to their business going forward: legislation and red tape; political uncertainty; and the current economic climate. Access to finance was the least likely to be mentioned as a major barrier (5 per cent).

Responding to the report, Stephen Pegge, Director of Commercial Finance, UK Finance, said:

These figures show SMEs should be confident in approaching their bank for finance, as 85 per cent of applications are successful. It is encouraging to see six in ten SMEs have a high level of trust in their main bank, which UK Finance and its members are working hard to improve further.

However, overall appetite for finance amongst SMEs remains subdued, with many reluctant to borrow amid uncertainty over future trading conditions. Legislation and red tape, political uncertainty and the current economic climate are all increasingly cited as issues holding SMEs back, while only one in 20 see access to finance as a major barrier.

This underlines the importance of the government, finance industry and regulators continuing to work together to address these issues and help SMEs grow and prosper.