Half of Small Business Owners Unsatisfied with Current Banking
Forum of Private Business survey reveals a quarter of businesses still unwilling to switch to alternative funding
Figures released today by business support group The Forum of Private Business (fpb) revealed that just under 50% of small businesses surveyed were unsatisfied with their current bank funding options.
Participants cited bank charges, reductions or calling in of loans, and complications in receiving finance as their main causes of concern regarding their business’ future.
The Forum’s results showed that many of the small businesses felt that for the sustained growth of the UK’s small and mid-sized businesses to continue, banks would have to make changes to their funding system – with many calling for more flexibility, greater access and for risk to be more dispersed.
Additionally, the report demonstrated the need for an increase in information on alternative funding options. A quarter of the businesses revealed that although unhappy, they didn’t consider looking to alternative funding sources, such as crowdfunding, angel investors and invoice finance. The main reasons for their refusal was worries of costs (35%), lack of knowledge (21%) and reliable advice (19%).
The Forum’s report comes shortly after the Bank of England’s report, which highlighted a drop in lending for banks among small and mid-sized businesses.
Phil Orford, chief executive of the Forum of Private Business, emphasised the importance of all funding options to small businesses:
“The government, the banks, other lenders and business support organisations are all important enablers of growth and need to work together to ensure small businesses are getting the necessary amount of money in the right format.”
Follow the link here for more information on alternative finance options and general guides to raising finance for your business.