I need to raise finance – is my bank the right partner?
A refusal from a big bank should not be the end of the line for a small business, but does a SME need to go there in the first place? As highlighted in the recent 2017 Small Business Finance Markets report from the British Business Bank the most common response from smaller businesses when they do not get the full amount of finance applied for is to give up or cancel their plans. This can mean businesses missing potential expansion opportunities, with a knock-on effect on UK economic growth.
Access to finance is important for any small business owner and there is now a record number of lenders to business across the U.K. Over the last six years the supply of funds for SME’s has grown phenomenally. The ability to borrow for any business is not an issue, it is the awareness and access that is the most difficult issue we need to overcome. Research shows that 71% of businesses seeking finance only ask one lender, which more often than not is their trusted bank manager, and, if rejected for finance, many simply give up rather than seek alternative options.
So how can small business owners find these sources of finance for their business? Last year 220,000 SMEs sought a loan or overdraft, 25% of these were initially declined by their bank and only 7% of those declined were referred to other sources of help.
There are over 250 lenders to businesses in the U.K. and it is estimated that less than 5% of SME’s have a Finance Director. So how can a small business owner find the time to research the right kind of funding from the right kind of lender in this bewildering market? Of course it is not simple, so the easy option is to head straight down to the closest High Street bank to look for a business loan.
But is it a business loan that is required? Is there a more suitable form of finance available? Seeking business lenders online is unfamiliar and can they be trusted? This all poses another dilemma. In personal finance we have seen and all use a comparison site, we now have that option available for business borrowing.
FinancemyBusinessonline in partnership with The Giftware Association gives access to over 110 lenders to the UK small business community including the High Street banks, new challenger banks, through to some real specialist niche lenders to SME’s, as well as to the Crowd Funding and Peer-to-Peer market.
As a member of the Giftware Association you have access to all of the major providers who operate across the whole spectrum of the business finance industry. The repayment terms are varied and there is funding available to suit any business -be it unsecured or secured depends on the individual business.
This is a unique opportunity that puts the small business owner in the driving seat to choose between several options rather than being at the mercy of their bank manager – take control now and explore your options today on www.financemybusinessonline.co.uk/ga-uk.