fear of rejection

Fear of Rejection Puts SMEs Off Applying for Business Loans

More than half of small businesses didn’t approach their bank for finance in the last year, because they expected to be turned down, research has revealed. Market research consultancy BDRC Continental’s SME Finance Monitor report, commissioned by the British Bankers’ Association (BBA), found that 55% of businesses employing nine or fewer staff did not apply for a bank loan in the last 12 months, because they feared they’d be rejected. The survey also highlighted that some businesses were more likely to have their lending applications turned down, including smaller employers and sole traders, those seeking new rather than renewed funding and firms less than ten years old. However, the BBA pointed to the report’s figures which showed that four in five overdraft ... »