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Loans are No Go for SMEs

Loans are No Go for SMEs
- A summary of a national poll carried out to UK SMEs
 
According to the manufacturers organisation the EEF, the availability of finance for small businesses is improving, but at an increasingly prohibitive cost. Touch Local carried out a poll amongst a sample of UK SMEs registered on our directory to find out if small business owners had experienced greater costs when seeking finance.
 
The Survey
 
As a small business owner, have you experienced greater costs when seeking finance?
The Results
Yes:                     266    (49%)
No:                      155    (28%)
Dont Know:          123    (23%)
 
*Total responses:  544
 
The businesses who took the survey are all listed on http://touchlocal.com
 
Summary
 
Just under half of small business respondents (49%) have experienced greater cost when seeking finance this quarter, with many unable to take our loans as a result. Others felt that bank lending had not improved at all, and were subsequently forced to look elsewhere for financial assistance. Over a quarter of respondents (28%) stated they were not experiencing higher costs when seeking finance. However, it is clear from the comments that several small business owners were looking for help from family and friends, and not professional financiers. 23% of respondents did not know their situation with regards to increasing costs, with the majority of these businesses requiring no financial assistance this quarter.
 
Some of the comments from the respondents:
 
I have not seen any improvement in the finance available to small business for us or my fellow SME businesses.
 
I have found big banks are willing to lend but at ridiculous cost
 
I am in the fortunate position of not needing to seek finance so this issue has not affected me.
 
High Street banks are simply not lending, in my experience. One is, therefore, at the mercy of more independent financiers, who charge exorbitant rates of interest. The banks need to make things easier for small business. If there is a good business plan, or an existing business that is clearly working, they should be open to lending. They are not.
 
I managed to borrow from family instead.
 
Being self employed, Banks and Lenders do make it difficult to get loans when in actual fact most self employed people are more secure than those employees working for a company.
 
We've had difficulty getting finance but when we have, it's been at a higher rate of interest.

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