There’s been a lot of talk in the media about there being a lack of funding available to SMEs, but are things really that bleak?
Earlier this month it was announced that the chief executives of the UK’s six biggest banks are setting up a taskforce, with the purpose of examining the reported lack of funding availability for small businesses. It’s an unprecedented move, but given the increasing number of complaints to the Financial Ombudsman Service about a dearth of bank loans at the same time as UK banks revealed bumper profits, it’s perhaps not unexpected.
Figures published by the British Bankers’ Association (BBA) show that the UK’s banks lent just £900m to small businesses last year, which represents a quarter of the annual totals recorded over the last five years. But while we’re hearing a lot about companies who are suffering having been turned down for finance, we’re also hearing of banks which are literally unable to give their money to suitable small businesses – and they are citing a reduction in demand for credit as the reason for this decline.
Despite all these seemingly conflicting claims, at CBHC we haven’t seen much of a difference in funding application results amongst our clients during the recent economic hard times. At the end of the day, if your business is strong, with a business planning history and a long-term strategy in place, it will represent a low-risk prospect to the lender and therefore you are likely to secure investment to fund the growth you desire.
This is where our Business Advisory department, working hand-in-hand with our specialist Corporate Finance team, can help you to raise the funds you need. To find out more about how we can help you to access extra capital to promote growth, speak to our specialist advisors.
