Raising Finance

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Three quarters of small businesses unhappy with traditional lenders

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The survey of more than 500 small firms carried out by ICM for Everline, the short-term business lender, found that nearly half (48 per cent) of business owners have cashflow concerns, with 29 per cent finding them to be a restriction on growth.

One in five of respondents suffers cash shortage at least once a month.

Russell Gould, managing director of Everline, said: “There’s clearly significant demand for short term credit from small businesses, but our research shows they lack confidence in traditional lenders.

“Those who do decide to apply for a loan are made to jump through hoops to get access to funds, which are often less than £25,000. If they’re accepted, the credit provided is usually more suited to bigger businesses – for fixed periods and with little flexibility.”

One fifth of those who have experienced cashflow problems in the past two years has applied for a loan but half of those have been rejected or are still pending.

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