Shocking figures reveal £4.3bn SME funding gap

Shocking figures reveal £4.3bn SME funding gap




A report has shockingly revealed that a £4.3 billion funding gap has deprived small and medium-sized businesses (SMEs) from growing….

 A report has shockingly revealed that a £4.3 billion funding gap has deprived small and medium-sized businesses (SMEs) from growing

The findings that polled 301 SMEs from Crowdfunding Business, Money&Co., announced a £4.3 billion funding gap has challenged SMEs to grow because of the lack in finance.

The results were conducted by Populus, a research agency, where UK SME Senior Managers were requested to give the figures on their last loan application compared to the average loan forked out, which gave alarming findings of a £4.3 billion inconsistency for 404,175 SMEs.

Nicola Horlick, CEO of Money&Co., said: “This research clearly shows that the banks are not providing UK SMEs with the finance they need. Although recent figures indicate that the UK economy is beginning to experience growth, we cannot ignore a funding gap of such magnitude. 

“The £4.3 billion funding gap isn’t just acting as a barrier to UK SME growth, it could potentially stifle the UK recovery.”

“Crowdfunding can help address the banking shortfall. The sector is experiencing a surge in interest and demand as businesses start to recognise a real alternative route to finance exists.”

The report showed a £11,752 average funding gap for small firms with 10 to 49 employees and an average gap of £69,961 for medium SMEs with 50 to 249 employees.

The traditional banking system appears to be broken for 64 per cent of the SMEs involved in the survey, where 51 per cent agreed that loan applications are dampened by bank bureaucracy.

Even though the findings showed colossal doubt in banks for SMEs, 72 per cent of those polled agreed that when applying for a loan, they would still target banks first, with only four per cent stating they would go to a crowdfunder.
 

Leave a comment