Two-thirds of SME bank finance applications are successful
The latest SME Finance Monitor results were released last week, and it’s great to see so many SMEs reporting that business is brighter.
The quarterly survey conducted by BDRC Continental reveals that over three-quarters (76%) of SMEs have reported a profit for the past 12 months, compared to 69% in the same quarter last year.
While the economic climate remains a challenge, fewer SMEs are citing it as a major obstacle to running their business (17%), with over half (53%) of SME owners now planning to grow their business in the coming year.
And it’s very encouraging to see that access to finance is seen as less of an issue than it has been, with only 8% perceiving it to be a business obstacle, compared to 10% who cite problems with legislation and cash flow.
When it comes to applying for finance, a small proportion of SMEs (5%) do say that a previous decline by the bank has made them more reluctant to apply for finance again. At Better Business Finance we’re working hard to ease these concerns, letting small business owners know that if they are turned down for finance, there is an option to appeal the decision.
Plus, there are hundreds of finance providers available, and small businesses can search for the option most suited to them through our easy-to-use finance finder tool.
And while a small percentage of SMEs say that the ‘process of borrowing’ puts them off, the survey also reveals that over 90% of successful finance applicants had their facility in place in good time for when they needed it.
Overall, almost 7 out of 10 business report success in their loan and overdraft applications made in the last 18 months. And even for those who haven’t quite made it, there is support available if you choose to explore other options. Whether that’s making an appeal, seeking advice about how to improve your application or researching alternative finance providers, growth for your business should not feel out of reach, and betterbusinessfinance.co.uk is here to help.
Irene Graham, Executive Director of Business Finance at the BBA