Almost 70% of UK small businesses want access to different funding options
Business owners have cited an "information gap" which could lead them to make the wrong decisions when accessing finance
69% of UK small businesses believe they are in need of alternative funding options in order to realise their potential, according to Close Brothers’ latest quarterly Business Barometer.
The survey, which analysed the priorities of small and medium businesses, revealed that 19% of business owners think there is too much red tape involved in accessing finance, with 14% lacking sufficient collateral to get the loans they want.
22% of the businesses surveyed said they did not have enough information about the different finance options available to them – Close Brothers suggested that this means that business owners may attempt to access unsuitable funding such as overdrafts or credit cards.
14% of business owners also said the the interest rate on their current credit is too high.
Stephen Hodges, chief executive of Close Brothers banking division, said:
“Making the wrong financing choices can stifle small business’ ability to unlock their own potential and create perennial cash flow problems. […] Not only that, but the landscape is becoming more complex which makes it difficult to navigate for many small businesses.”
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