- 39% of SMEs reported using any form of external finance, the lowest recorded by the report.
- SME confidence that their bank will agree to a future lending request dropped to 40% in Q1 2013, from 43% in Q4 2012.
- Amongst ‘would-be loan seekers’, 40% said they had felt that ‘discouragement’ had stopped them applying for a loan.
- For those with any appetite for future borrowing, 27% cited access to finance as a major barrier to running businesses in the next 12 months. The current economic climate (43%) was still seen as the biggest barrier to running a business
Commenting on the independent SME Finance Monitor for Q1 2013, published today, Caroline Williams CEO Norfolk Chamber of Commerce said:
“The latest figures from SME finance monitor are concerning because they show a continued deterioration in companies’ confidence when dealing with financial institutions. It is disheartening to see that the availability of external finance remains a barrier to growth for many businesses. Although it is understandable that first-time applicants remain among the least successful when applying for loans, many of these will be young and fast-growing firms who aren’t getting the funding they need to expand. This is why we need to see a swift delivery of the British Business Bank with both the scale and the infrastructure needed to help dynamic businesses to grow.
Locally there are a number of new financial initiatives to help small and medium businesses supported by the New Anglia LEP with new opportunities being added all the time which will put our businesses in a strong position to go for growth”.
