Firms missing out through lack of funding
NEARLY one in six small and medium-sized firms in the eastern region believe they have missed out on business opportunites in the past year due to a lack of funding, according to a new survey.
And while 16% feel they have been unable to take advantage of opportunities fully this year, more than half (54%) believe it will be still more challenging to get funding in the next year due to changes in the credit markets.
The study, conducted for GE Capital, suggests that the value of lost business opportunities to small and medium-sized enterprises (SMEs) in East Anglia and the East Midlands this year could be as high as �13.75billion.
According to the study, the South East was the hardest hit region in the UK, with 28% of SME owners believing they had lost out on potential business due to limitations on funding.
John Jenkins, chief executive of GE Capital, said: “Despite a perceived shift in economic conditions, it is incredibly unfortunate to see the extent to which SMEs are missing out on business opportunities.
“It is vital, over the forthcoming year, that they secure the right amount and type of funding early to avoid missing further opportunities. The continuing well-being of the UK economy depends on these SMEs achieving their goals and securing growth. Considering the magnitude of the opportunities that UK SMEs could lose out on due to a lack of funding, it is more important than ever that businesses and their advisers are aware of and consider alternative forms of finance, such as invoice discounting and asset based lending, as a means of securing the right funding at the right cost.”