New research from the Federation of Small Businesses1 has found that small firms are finding it increasingly difficult to access new finance.
Some 60% of small firms that apply for credit are successful. The figures are the lowest since the Q4 2015, and down considerably from the 74% recorded in the same quarter in 2017.
Speaking before the Bank of England’s decision to put plans to raise rates above 0.5 per cent levels on hold, FSB National Chairman Mike Cherry said:
“Personal and professional finances are closely intertwined for a lot of small business owners. More expensive personal debt can often mean less to invest professionally. Yes, rates will rise at some stage. But it needs to be at a pace that small firms can afford.”
Access to finance remains a critical barrier to both growth and success for many small business owners, across all sectors and making finance more readily available is something that must remain firmly on the agenda of providers.
That is why, on the flipside of business finance at White Oak UK, we have continued to accept 4 out of every 5 applications we receive.
Last year, we lent over £500m to UK small businesses. As the banking giants continue to cut back on the amount of finance they dish out to firms, people are now beginning to accept that funding is unlikely to return to the levels they were prior to the 2008 financial crash.
As Peter Alderson, managing director at White Oak UK, explains:
“I think it’s fair to say that businesses have continued to struggle with obtaining finance in recent years, and whilst many banks are making pledges to do more for smaller businesses, we may not see any rapid material change here.
"The more people look away from the traditional routes, such as their banks, the more they realise the world of opportunity that exists in the form of alternative finance, often providing a much simpler and inherently faster solution, and this is a major thing for businesses where time is money.”
To find out how White Oak UK can help your business grow, visit our Products section here.
You can also learn about the benefits of using finance as an everyday business tool and find out why our customers come back to White Oak UK again and again, by downloading our free guide, 11 Ways to Make Money Work for Your Business.
1 Small business credit approvals hit 30-month low as rate decision looms - fsp.org.uk