"Every week, I speak with SME owners who tell me the same thing: they need funding urgently, but every door they knock on seems to slam shut. The rejections pile up, the frustration mounts, and inevitably, they conclude that lenders simply aren't lending. The numbers bear out their frustration. The Federation of Small Businesses reports that only one in ten small businesses rate the availability and affordability of finance as good, with over half rating it as poor."
"A staggering one in five businesses who successfully applied for credit were offered interest rates above 20 per cent. But lenders are lending. The uncomfortable truth is that the problem isn't just about market conditions - it's preparation. The statistics are sobering. Fewer than 40 per cent of UK SMEs have a formal business plan, and nearly a third of those admit their plan is not kept up to date."
An approaching Budget and last autumn's £40bn fiscal adjustment have heightened business unease after businesses absorbed most cuts. Many SMEs urgently need funding but face repeated rejections and high quoted rates, with one in five successful applicants offered interest above 20 per cent. Only one in ten small businesses rate finance availability and affordability as good, and over half rate it poor. Fewer than 40 per cent of UK SMEs have a formal business plan, and nearly a third do not keep plans updated. Lenders respond favorably to businesses that understand themselves; poor preparation attracts higher pricing or refusal.
Read at London Business News | Londonlovesbusiness.com
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