One in five SMEs relying on family and friends for finance

The research by Hilton-Baird Financial Solutions found that 19 per cent of the businesses asked were using money from family and friends, up from 11 per cent the previous year.

Of these, one in four said access to funding was their main concern for the next sixth months, and more than half were planning to seek additional funding.

Evette Orams, Managing Director of Hilton-Baird Financial Solutions, said: The downward trend of traditional business lending can be seen both as a negative and positive. On the one hand many businesses are being starved of vital funding, but on the other it is driving businesses to look at other, arguably more suitable, funding methods.

The research also found that usage of invoice and asset finance was increasing.

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