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.”
Notes to Editor
- UK Finance is a trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
- The quarterly SME Finance Monitor is produced by independent insight agency BDRC for the member banks of the Business Finance Taskforce and is produced independently under the governance of a steering group. It is the largest and most frequent study of its kind in the UK, with research findings gathered across 29 waves of interviews since 2011 and based on more than 140,000 interviews with SMEs. For more information please contact: firstname.lastname@example.org