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UK SMEs 'struggling to access business lending'

Date Added: 15/05/2013  

Small to medium-sized enterprises (SMEs) around the UK are finding it hard to access the money they need to grow and boost the economy as a result.

Blockages in the business lending system could put some firms at risk of being served with a winding up order and an increasing number of companies are turning to alternative funding.

Over a third (34 per cent) of the organisations that took part in a survey for the Department of Business, Innovation and Skills by IFF Research stated that they need external capital if they are to be able to grow their business in the coming months.

Data has shown schemes such as Project Merlin, Funding for Lending and the government's new Business Bank are not yet working and firms are looking at their other options.

Boost Capital is one of the companies seeking to exploit this blockage in the business lending system by offering organisations another way to finance the growth of their firms.

"So many of the UK's SMEs are struggling to get funding via traditional lenders. Despite government proposals intended to help, we have yet to see any significant impact," said Marc Glazer, chief executive of Boost Capital.

He added: "We believe it is essential that SMEs with growth potential have access to financing without a prolonged, difficult process. That's why our goal is to provide capital in as few as five business days."

Santander recently confirmed it is to continue to focus on business lending in the coming months and the bank stated it is aiming to increase its share of the market during 2013.

Marcelino Castrillo, corporate and commercial managing director for the firm, told Mortgage Introducer that now Santander is in a healthy position and has a five per cent share of the commercial market, it is trying to grow this to ten per cent in the next three to four years.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

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