Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Frustrated SMEs screaming for fresh cash struggle to get bank loans

by November 14, 2022
November 14, 2022
Frustrated SMEs screaming for fresh cash struggle to get bank loans

Three-fifths of UK SMEs said that they currently need funding to ease day-to-day cashflow issues, according to new research.

However, those businesses increasingly struggling to get loans from high-street banks, the survey found.

And more than two thirds of SMEs reported that they need funding to grow.

With around 5.6m SMEs in the UK, that means that about 3.3m need to access finance to help them stay afloat during an extremely challenging time for businesses, Channel said.

But business owners are facing roadblocks when it comes to receiving loans because of a reluctance among high street banks to lend to smaller firms, the survey found.

Over half of the more than 500 business leaders surveyed said that they think high-street banks are too slow in assessing business loan applications, and just under half felt that they are reticent to lend to smaller businesses.

It comes as a number of banking giants reiterated that they had strict affordability tests when it comes to lending, but have set aside millions of pounds to deal with potential defaults amid cost-of-living pressures.

NatWest said it was introducing targeted lending packages for the most badly affected sectors, such as farmers who are facing a plethora of cost challenges.

But SMEs said that they are open to using alternative lenders for finance options rather than relying on big banks for loans, Channel’s survey showed.

Walter Gontarek, the chief executive of Channel, who carried out the research, said: “From Brexit to the pandemic; the cost-of-living crisis to Government fiscal U-turns, the past five years have been hugely challenging for SMEs – and financial planning is extremely difficult in the face of so much political and economic uncertainty, as our research has shown.

“Millions of SMEs need funding to soothe cashflow headaches or, crucially, to pursue growth strategies.

“Yet unfortunately, accessing that finance is notoriously difficult.

“Our study highlights the poor experience SMEs often have with big banks’ reluctance to lend, not to mention complex and time-consuming application processes with no guarantee of approval.”

The firm added that smaller businesses need to grow to help boost the economy, because they account for a big proportion of the UK’s employment and turnover.

Read more:
Frustrated SMEs screaming for fresh cash struggle to get bank loans

0
FacebookTwitterGoogle +Pinterest
previous post
The Twitter Exodus: are we coming or going?
next post
Deposit Protection Schemes: A Complete Guide To Protect Your Tenancy Deposit

You may also like

Landmark Court of Appeal Ruling Promises £21bn Payout...

October 25, 2024

Ministers pressed to address workforce health as UK...

February 24, 2025

How IT staff augmentation can help your tech...

February 21, 2023

Brits Cut Back on Airfryer Purchases Leading to...

February 13, 2024

The Entertainer halts new store plans due to...

November 9, 2024

How partnerships and networking can help grow small...

February 26, 2025

How Your Business Can Harness the Power of...

September 11, 2023

UK and Albania outline £4bn ambition for closer...

March 27, 2023

HMRC issues winding up petition against PPE firm...

September 2, 2022

Employment Rights Bill: How It Could Affect Business...

May 21, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved