Nearly eight out of ten small and medium enterprises (SMEs) have avoided using finance in the last 12 months.
BDRC Continental’s findings from its latest SME Finance Monitor – which is released on a quarterly basis – raise the question of whether banks are as much to blame for the lack of lending taking place as previously thought.
The research is based on around 50,000 interviews with small business owners to provide a comprehensive picture of the challenges and attitudes within the economy.
Only 15 per cent of firms took out finance in the third quarter of 2013, which was down by 10 per cent on the peak seen back in the first quarter of 2012.
However, one reason behind the trend could be a lack of awareness in schemes designed to help companies borrow – with just a third of respondents admitting they knew about the government’s Funding for Lending initiative.
Posted by the Secret Businessman