Small Businesses Could Generate £34bn for the Economy by 2021, On One Condition
Barclays' new research suggests the majority of UK small firms would increase turnover if given better access to loan facilities
UK small businesses could unlock £34bn for the economy by 2021, and generate 194,000 new jobs, if they were able to secure the right loan.
Latest research conducted by Barclays with 794 small and medium enterprises suggests that 64% of small business could increase their turnover if they had access to adequate loan facilities.
Despite acknowledging that applying for a loan could provide a growth boost, 30% of the small and medium-sized businesses surveyed said they had no plans to enquire about a loan.
With ongoing uncertainty surrounding the Brexit decision, 24% of small firms shared the view that it will become harder to secure a loan this year while 20% said they already believed Brexit had impacted upon their current or future funding requirements.
In response to the findings, Barclays has this week launched a mobile lending app which claims to reduce the time it takes to secure a loan to less than an hour, instead of the five weeks businesses that it typically takes for a loan to be agreed.
Barclays is thought to the be the first UK bank to offer a mobile loan service like this to businesses.
Ian Rand, CEO of business banking at Barclays: “Our new, pre-assessed lending gives customers the ability to see how much they could borrow on their mobile and we can get that money to them more quickly than ever so they can invest in and focus on running their businesses.
“We are particularly determined to reach out to those businesses who believe lending will be more difficult next year to see where we can help.”