Third of Small Businesses Turn to Personal Funds in Favour of External Finance
One in three small businesses are “digging into their own pockets” and rejecting external finance to grow their business, research from Hitachi Capital has indicated. The study of 1,000 small business owners found that, while 30% of businesses have used their own savings to fund growth in the last 12 months, 16% have opted to use overdrafts, and 7% have taken money from family and friends. In contrast, only 21% of small and medium-sized business owners have used external finance solutions such as loans, peer-to-peer lending, and invoice finance in the last year, despite the fact that cashflow was named as the biggest worry by those businesses surveyed. The research also highlighted some alarming findings for growth prospects among small business owners. Just 6% said they expect... »
