SME Finance Lacking: Research

Steven Bobson, Europe & Americas Editor
November 15, 2010 /

According to a research conducted by Venture Finance, accountants are reporting acute problems for UK small and medium-sized enterprises who want to raise finance.

Venture Finance is the invoice and asset based lender. It is a part of the ABN AMRO group.

Credit Check survey, which is Venture Finance’s fourth annual report, has revealed that almost two-thirds (60%) of accountants in the UK feel that traditional bank finance is still barely available to UK small and medium-sized enterprises.

20% of the accountants who took part in the survey said that their clients have seen conditions changed or traditional funding withdrawn during the downturn.

Over half (57%) of the accountants surveyed said that clients are still plagued by cash shortages.

80% of the respondents have said that they have witnessed their client’s faith in traditional finance sources being lost due to the decreased availability. 62% of the SME’s believe that personalized service and reliability are more important in a lending relationship than the cost.

Respondents to the survey have also reportedly said that unsecured company loans are rarely, if ever, available to eligible companies. 30% have also said that business angels have also become a lot less accessible than before as a source of funding.

The survey has also found that 40% of the accountants are of the opinion that their client’s plan of growth and expansion does not match the opportunities to finance growth in the current economic environment.
Peter Ewen, who is the Managing Director of Venture Finance, said in a statement that, the recent £1.5 billion growth fund for small businesses which was set up by a group of British banks “is a welcome development”.

Ewen further added that the SME’s of today need to work to understand the best financing options for growth.


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