Over one in five small and medium-sized enterprises (SMEs) have seen their lending conditions from high street banks worsen in the last five years, according to new research.
Peer-to-peer lending firm rebuildingsociety.com found that 21 per cent of businesses have had their terms altered on finance products in that time.
While two-fifths of those affected experienced an interest rate hike in their overdraft facility, a third saw their access to additional borrowing limited.
It highlights the ongoing strained relationship between SMEs and the main lenders, with just one per cent of respondents claiming to have ever defaulted on a loan, despite the reluctance of banks to lend.
Rebuildingsociety.com’s managing director Daniel Rajkumar said: “Small businesses need all certainty in their finances as they look to grow, instead of worrying about their lending facilities being adjusted. Our research shows the disparity between those that have defaulted versus those whose facilities have been adjusted or withdrawn.”
Posted by the Secret Businessman