Businesses Owners Still Reliant On Bank Of Mum And Dad As The Real Thing Turns Them Down
25% of micro-businesses owners still rely on personal savings, family borrowings and credit card loans, to fund growth – according to a report Close Brothers. Banking on Growth: Closing the SME funding gap revealed a disparaging gap between the success rates of lager firms and micro-businesses (those with between one and nine employees) seeking finance from traditional lenders. While 38% of all small businesses have used bank loans to grow, this figure rises to 51% when enterprises with more than 100 workers are considered. Early-stage businesses and start-ups also struggle to gain the trust of banks in the beginning of their journeys, as 37% admit they’ve been refused credit in their first two years of trading. It’s suggested a failure for small businesses to secure funds could hamper lon... »
