More than half of small and medium-sized businesses (SMEs) are struggling to get funding in uk. They need help to boost investment and productivity. Only four out of ten SMEs have been able to secure funding from their chosen lender.

Startups are a very lucrative, easy way to make millions and get rich. When a brilliant idea boils up in your mind. Investors will pay close attention if you are a geek.

Time for a reality check. Wake up from your dream!

 

Today Small And Medium Businesses Are Struggling To Get Funding In UK

According to merchant bank Close Brothers, only 4/10 SMEs have been able to secure funding from their chosen lender.

Of these, 34% felt that the capital available to them wasn’t enough to fund their investment plans, while a further 24% said that the type of funding was too expensive.

Since the financial crisis, Britain’s high street banks have been less willing to lend to small businesses over fears they might default.

However, the market has recently started compensating to some degree with the growth of challenger banks and peer-to-peer lenders – giving businesses more options.

One in five of our members had their credit applications turned down in the third quarter, while over half were offered a lending rate of over 4%.

Adrian Sainsbury, banking division managing director at Close Brothers said “The right funding was integral to improving productivity and investment.”

He also said low productivity hinders economic growth and improving productivity is vital, particularly as the UK prepares to leave the EU. SMEs will be central to potential productivity gains.

 

SMEs need access to the right finance and support to invest in training staff or adopting new technologies so increasing awareness of financial options is crucial.

However British companies tend to be a little more humble in their approach and in the funds they are seeking. UK investors are typically looking for a strong management team, scalable proposition, large addressable market, a solution to a problem, and a personal rapport with an entrepreneur they can believe in.

Businesses need to have spent time honing their pitches, learning their numbers and of course, must have decided how much money they need.

Uk investors are rethinking their strategies and this could be to the advantage of UK businesses.

2018-01-09T12:06:11+00:00

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