UK SME owners are struggling to find funding for their scale-up plans, with just 41 per cent of able to access capital through their preferred funding route. This is according to new research from Close Brothers Group, which found that, of those business owners who received funding whether through banks, personal loans or specialist lenders, 34 per cent felt that it wasn?t enough for their investment plans. In addition, 24 per cent felt that the type of funding they used was too costly. With access to funding widely regarded as crucial for scale-ups, 26 per cent of those who had secured finance claimed they were unsure how to use it. Potentially, smaller businesses require additional support when it comes to finance products. In fact, 20 per cent of UK SMEs said the funding they had received was not suited to their business. Adrian Sainsbury, Banking Division managing director, Close Brothers commented: ?Low productivity hinders economic growth and improving productivity is vital, particularly as the UK prepares to leave the EU. Given their importance to the economy, SMEs will be central to potential productivity gains. ?SMEs need access to the right finance and support to invest in training staff or adopting new technologies so increasing awareness of financial options is crucial. Bespoke funding solutions which align to specific needs and growth plans are always preferable to a one-size-fits-all approach.? The problem is not limited to the UK either. Around 16 per cent of SMEs across the UK, Germany and France were unable to access capital at all. German SMEs were better able to secure finance through their chosen route (47 per cent) compared to French SMEs (33 per cent).
This article is part of a wider campaign called the Scale-up Hub, a section of Real Business that provides essential advice and inspiration on taking your business to the next level. It?s produced in association with webexpenses and webonboarding, a fast-growing global organisation that provides cloud-based software services that automate expenses management and streamline the employee onboarding process.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.