Half of UK Start-Ups Rejected for Finance Told they Hadn’t Been Trading for Long Enough
Study finds 44% of small businesses are self-funding to raise necessary capital
Almost half of the UK’s small and medium businesses rejected for finance were turned down because they hadn’t been trading for long enough, according to a new study by invoice finance provider Bibby Financial Services.
Surveying over 1,000 businesses, the research found that 44% of start-ups had used their own savings or borrowed money from friends or family after being turned down for funding from banks and investors.
The study also found that in the last year alone one in five small and medium enterprises have been rejected for funding.
Bibby Financial Services CEO, David Postings, discussed the research: “Accessing finance is still a challenge for a large number of viable businesses.
“The fact that half of those turned away were told they hadn’t been in business long enough underlines a familiar catch-22 where owners require funding to kickstart or grow their businesses, but need a track record to obtain funds.
“If we truly want to support businesses in the UK, we need to find a way of supporting them from start-up and early stages, right the way through to maturity.”