Only 15% of business owners completely trust traditional lenders

Of the 502 business owners surveyed, 37% said that the main reason for not trusting them was because of a bank’s reputation.

More than a third (35%) of SME business owners try to avoid borrowing money for their business at all costs, despite 67% of SMEs doing so in the last 12 months.

The main reason reported for not wanting to borrow money, is that they want to owe as little as possible (53%).

Andy Dodd, managing director at Hitachi Capital Invoice Finance said: “It’s interesting to see business owners remaining cautious with regards to business funding, potentially restricting their ability to grow. 

“There appears to be an ongoing negative perception of more common lenders, despite them using this option to keep their businesses funded. 

“This shows a clear discrepancy between SME’s wanting to borrow from these types of lenders and them needing to. 

“More than 20% also noted that maintaining their cashflow is a top concern for them for the year ahead, and indicates this is something they are currently struggling to manage. 

“It is important for business owners of any kind to be aware of the funding options available to them and what they are eligible for, as there are a number of options available to help prioritise overdue payments and maintain financial resource, particularly outside traditional lenders.”