Partly Cloudy

Partly Cloudy

max temp: 7°C

min temp: 1°C

ESTD 1874 Search

East Anglia: Access to bank finance still a concern for region’s SMEs

13:00 07 June 2014

Mike Randall, chief executive of Close Brothers Asset Finance.

Mike Randall, chief executive of Close Brothers Asset Finance.

Archant

Four out of five small and medium-sized firms in East Anglia which plan to seek funding for growth in the next 12 months fear their bank will turn them down, according to a new survey.

shares

The poll for the latest Close Brothers Business Barometer found that nearly 20% of SMEs in East Anglia plan to seek growth funding but that, of those, 80% fear they will be refused by their bank.

Mike Randall, chief executive of Close Brothers Asset Finance, 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 almost a fifth of firms surveyed in East Anglia have been declined access to bank funding over the last six months, so the fears businesses have are not unfounded.”

The survey also revealed that more than half of local businesses admit that their knowledge of alternative sources of finance could be better, while 11% say they are unaware of any alternatives to bank lending.

Mr Randall added: “It’s vital that firms consider other means of investment to help them fund their growth and find a solution that supports their needs.

“Asset finance is one alternative that has become increasingly popular in recent years. However many companies remain unaware of how it can help them to achieve their potential.”

However, the BBA organisation, which acts as a collective voice for the banking sector, said last week that new loans to medium-sized businesses grew during the first quarter of this year by £3.6billion, with overall new borrowing totalling £6.8billion – a 10% increase on the same time last year.

“This is reinforced by encouraging results from independent SME Finance Monitor where fewer than one in ten businesses said that they view access to finance as a major barrier to their growth and success,” BBA added.

shares

1 comment

  • I think you are supposed to read the press release and make an article from it, you know, perhaps interview a few local businesses etc, not copy and paste it!

    Report this comment

    Ipswich Entrepreneur

    Saturday, June 7, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Beardmore Park.
lings

The relocation of a Martlesham garden centre, which had been facing closure, could pave the way for Marks and Spencer to expand its neighbouring store significantly.

Greene King has reported increased sales across its businesses for the first 40 weeks of its current year.

Pubs and brewing group Greene King today reported continued growth across its businesses, helped by “record trading” on Christmas Day.

The Port of Felixstowe is to offer a container-weighing service to exporters.

The Port of Felixstowe is to launch a container weighing service to help UK shippers comply with new international regulations due to come into effect on July 1.

The Visit East Anglia stand at the Vakantiebeurs tourism exhibition in Utrecht.

Visit East Anglia (VEA) has launched a promotion to attract more Dutch visitors following a successful bid under the Government’s GREAT UK Challenge Fund.

Jo Harris worked at the B&M store in Copdock until 2013, and despite being an employee there was issued two fines of £70 for parking.

A group of former employees at a store in Ipswich have been left distraught after car park fines mistakenly issued more than two years ago has left them facing a court appearance.

Most read

Fred Olsen Travel Sale

cover

Click here to view
the Fred Olsen
Travel Sale

View

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Great British Life

Great British Life
MyDate24 MyPhotos24