August 9, 2013, by Kelly Cookson
UK SMEs and Business Advisers on access to finance
The Haydn Green Institute for Innovation and Entrepreneurship runs two online UK business surveys: UK Business Barometer (UKBB) and UK Business Adviser Barometer (UKBAB). The results of the surveys are instantly processed and posted on their respective websites.
In the July 2013 survey, UK SMEs and business advisers were questioned about access to bank finance.
The responses from UK SMEs were as follows:
| In your experience, how available has access to bank finance become over the last 6 months? | |
| Significantly more available | 1.3% |
| More available | 14.7% |
| No change | 73.3% |
| Less available | 6.7% |
| Significantly less available | 4.0% |
Adrian Smith of Clutch Parts commented: “I see bank finance as ‘scared money’ and potentially a worse option than lack of finance. Lack of finance and the ways around it are a lesson that once mastered lead to stronger business.”
UK business advisers were asked the same question:
| In your experience, how available has access to bank finance become over the last 6 months? | |
| Significantly more available | 0.9% |
| More available | 15.6% |
| No change | 71.6% |
| Less available | 11.0% |
| Significantly less available | 0.9% |
Colin Hickey of JCD Business Solutions said: “I work as an A2F business adviser and continue to be disappointed at the time taken for high street banks to come back with an answer – regretfully this is mostly a decline. The front line staff continue to advise ‘Open for Business’ but the credit teams still appear to be risk averse as opposed to risk aware. Fortunately there are other providers such as CDFI’s and Cloud.”
Max Walker, Managing Director of Markwel Associates commented: “Nothing has changed regarding access to bank finance especially in the area of start-ups. The response to presenting a start-up business plan is ‘your client does not have a history in the commercial area’. How on earth are people trying to start a business going to have a ‘history? Or, the interest rate for a loan is prohibitive, or the conditions required for collateral are untenable (such as the applicant’s house is required to secure a loan often when only £20-£30K is required). However established companies seemingly can get nearly all the funding (within reason) they want.”
More information about the UK Business Barometer (UKBB) and UK Business Adviser Barometer (UKBAB), including results and analyses, can be found on the web at www.ukbb.ac and www.ukbab.ac Businesses and advisers wishing to contribute as panellists on the project can register via the websites.
The UK Business Barometer has a group on LinkedIn and can be followed on Twitter @UKBB_UoN
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