East Midlands: Businesses need to look at alternatives to bank loans for funding

Figures gained from a poll of East Midlands business owners have revealed that two-thirds are still worried that their bank will not offer them financial support should they ask for it.

Monday, 2nd June 2014, 9:00 pm
Mike Randall says businesses need to look at alternatives to bank loans for funding

The figures, from the Close Brothers Business Barometer, show that in n the third quarter of 2013, almost 20 per cent less businiesses felt that their bank would deny them access to financial support than in the first quarter of this year.

Close Brothers chief executive Mike Randall said: “It is encouraging that many firms are planning for growth and seeking investment.”

“But unless they can get access to funding it will be difficult to realise their ambitions.

“To successfully build long-term development plans, companies will require greater access to working capital.”

“It is important they understand and explore the alternatives available to bank lending, especially if they fear being turned down.”

“Our research found that over a fifth of firms surveyed in the East Midlands have been declined funding over the last six months, so the fears are not unfounded.”

The survey also revealed that 42 per cent of local businesses admit that their knowledge of alternative sources of finance could be better, while 12 per cent say they are unaware of any alternatives to bank lending.”