- 24 Sep
Percentage Of SMEs Using External Finance Increases.
The percentage of SMEs using external finance has increased to 46% (H1 2019). This is an increase, up from just 36% in 2018, according to the latest Q2 2019 SME Finance Monitor - published by BVA BDRC.
Percentage Of SMEs Using External Finance Increases
The report shows that there has been a significant increase, of nearly 28%, in the proportion of SMEs that are using external finance - positive news for the business finance sector.
This has been fuelled by a reduction in the percentage of "permanent non borrowers" (PNBs), down to 41% from 48%.
The report also suggests that more SMEs expect future business growth. The proportion expecting growth has risen to 50% at the end of the first half of 2019. This seems a very positive figure, in the light of recent uncertainties surrounding Brexit, and the failure of well known UK brands such as Thomas Cook and Carillion. Growth is often a key driver of the requirement for external finance to support business expansion.
Finance Application Failure Rates & Alternative Finance
13% of SMEs polled expected to apply for external finance in the coming months. However, the survey reports that some 24% of historic applications for finance have not resulted in a facility. The highest application failure rate having been for bank loans, where 37% did not result in a facility.
Many businesses are now aware that there is an extensive alternative finance market of funders that are in place to help with failed applications for finance.
Funding Despite Credit Problems
They are often able to assist where parties that have been unable to qualify for traditional bank facilities, or have been declined. We can put you in contact with sympathetic funders. These can overcome obstacles and still provide funds despite issues such as previous adverse credit history, being in a CVA arrangement, court judgements and other credit problems.
To understand more please speak to Sean on 03330 113622 and he will be able to outline the alternative finance options that may be available to your company.