Three quarters of small businesses unhappy with traditional lenders
1 min read
10 December 2013
Three quarters of small businesses are unhappy with traditional lenders and more than half (51 per cent) think they aren't interested in their business, according to new research.
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.