WILL BANKS “PULL UP THE DRAWBRIDGE”​ ON SMALL BUSINESS LENDING?

SMEs are the lifeblood of the UK economy. According to the FSB, at the beginning of 2021, SMEs account for three-fifths of the employment and around half of the turnover in the UK private sector. However, there is a serious concern that banks are “pulling up the drawbridge” on funding for small firms, which might squeeze economic growth.

In Q1 2022, fewer than one in ten (9%) small businesses applied for funding, the lowest rate ever since the record began. Unfortunately, only 43% of the applications got approval. The proportion of respondents who describe credit availability as “good” has dropped to its lowest level since 2016 (19%).

FSB National Chair Martin McTague said “A lot of those who’ve worked tirelessly to adapt, survive and thrive over lockdowns need finance too, empowering them to take their firms to the next level, driving our economic recovery and the transition to net zero in the process.”

That’s why The Startup Pack Team has put enormous effort in producing The Startup Finance Directory which helps new businesses source their funding and:

✅ Identify at the outset businesses and sectors that the funders will and will not consider for funding.

✅ Confirm if the funder’s facilities are available just for B2B, B2C or both types of business.   

✅ Clearly state the security requirements

✅ Asset classes funders will support.

✅ Confirm what type of funding is provided – equity, lending, grants etc.

✅ Contact and website details in order to find out how to apply for funding.

✅ Minimum turnover requirements.

✅ Owners residency status.

✅ Geographical restrictions.  

Contact us to find out how we can help!

Tel: 01604 435133

Email: info@thestartuppack.co.uk

Original article: https://firstvoice.fsb.org.uk/first-voice/concern-for-small-businesses-as-banks-pull-up-the-drawbridge-on-lending.html

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