funding options

Small Business Overdrafts Fall by £100m As Banks Adhere to New Regulations

Small Business Overdrafts Fall by £100m As Banks Adhere to New Regulations

Small business overdrafts are ‘dying out’ with the value of overdrafts falling by £100m a month, according to a report by Funding Options. The findings found that small businesses were borrowing £12.1bn in bank overdrafts at the end of March this year, compared to nearly £14bn at the end of September 2014, representing a fall of 13%. The value of bank overdrafts to small enterprises has fallen 42% over the past five years down from £20.9bn in April 2011. Its suggested that small business overdrafts are now particularly unattractive for banks, who have been reducing this type of lending since the recession with banks required to retain higher levels of regulatory capital if they have large amounts of unsecured lending to smaller firms on their balance sheets. Conrad Ford, CEO of Funding Opt... »

£5.7m in Small Business Loans Withdrawn Every Day

£5.7m in Small Business Loans Withdrawn Every Day

Small business’ bank overdrafts and loans have been withdrawn – many without warning – at the rate of £5.7m a day since 2011, new research by Funding Options has found. Yet the report found that entrepreneurs are fighting back, with 741 recorded complaints about bank finance made by small businesses to the Financial Ombudsman Service in 2014 alone. The research showed that more small and medium enterprises are also choosing to move away from traditional funding to alternative finance routes – up 43% to £76bn in 2014. Furthermore the report indicates that the complaints are not a full reflection of the scale of the problem as it’s only smaller and micro-businesses who are speaking out; firms with 10 or more employees or with a turnover of more than €2m are failing to file complaints. The ne... »

Almost Half of Small Businesses Set to Grow in 2015

68% of small and mid-sized businesses are confident in their ability to raise finance but majority are unaware of full range of funding routes Research from the government’s British Business Bank has revealed 46% of small firms are predicting growth in 2015. The report, which is the first in a series of annual reports, titled the Small Business Finance Markets, surveyed a 1,000 small firms. However, despite positive expansion plans, the majority of businesses were unaware of the finance options available to help them manage this growth. 68% were confident in their ability to get funding; yet only 65% have heard of alternative finance options such as crowdfunding and peer-to-peer lending and an additional 33% were unaware of government and local authority grants. The most recognised forms o... »