Half of UK SMEs are struggling to access finance, finds BCC

Many SMEs feel it’s become increasingly difficult to access the finance they need, according to new data from the British Chambers of Commerce (BCC).

Around half of the 533 firms surveyed said securing funding had become more challenging over the past three years, compared with just 13 per cent which believed it’d got easier.

On top of that, 70 per cent have not accessed finance from an external provider in the past twelve months, though companies with more than 50 employees are more likely to have done so than smaller firms.

And with businesses continuing to struggle against economic headwinds, 51 per cent of respondents gave cash flow as the main reason for seeking finance.

Jonny Haseldine, policy manager at the BCC, said: “As small and medium sized firms across the UK continue to deal with ongoing economic pressures, accessing crucial finance is really tough.

“For many SMEs it’s a hurdle too large to even try and tackle.

“We need to see measures to improve accessibility to finance, better awareness of alternative funding options, and greater competition in banking options.

“Scaling up businesses in the UK is already challenging. The problems are multiplied for female or minority ethnic led firms.

“Many business owners are forced to dip into their own savings to grow their companies.

“SMEs are the backbone of the UK economy. Giving firms easier and more competitive access to finance is crucial to getting the economic growth we all want to see.”