Restricted access to finance 'holding back UK economy', FSB warns

12 Nov 2018

The Federation of Small Businesses (FSB) has warned that UK economic growth is being 'restricted' by limited access to alternative finance options for small businesses.

Research carried out by the FSB revealed that just 13% of small firms are currently looking to apply for external finance. 68% of these businesses are being offered lending rates above 4%, according to the data.

Of the firms which applied for finance in the third quarter of 2018, 70% chose to utilise a bank loan or overdraft facility, according to the FSB. The business group warned that there is a 'lack of meaningful competition' within the small business banking sector, which is becoming a 'chronic issue'.  

'Despite being a decade on from the crash, we still have this dangerous combination of weak appetite for, and low awareness of, alternative finance options, high borrowing costs and inadequate support for small firms that are turned down by banks,' said Mike Cherry, National Chairman of the FSB.

'Having real time access to accounts will make it easier for finance providers and investors to identify the right routes for clients and make decisions swiftly.'

Copyright

© 2019 Volans, Leach & Schofield. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
0113 245 7031

Quick links

Home | Contact us | Credit | Site map | Accessibility | Disclaimer | Help |


Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the FCA.

Our FCA Register number is 542783 which can be checked at www.fca.org.uk/register. The Financial Conduct Authority does not regulate taxation and trust advice, personal finance and some aspects of commercial property investment.

Volans, Leach & Schofield is a trading style of Volans Limited - Company number 07549089.

Registered in England and Wales with registered office at Volans, Leach & Schofield, 10 Blenheim Terrace, Woodhouse Lane, Leeds, West Yorkshire LS2 9HX .

Directors: Christopher Smart FCA CTA and Martin Knaggs FCCA.

Please check the information in the Disclaimer page before proceeding.