According to research conducted by Saxo Payments Banking Circle, one of the main reasons for small and medium size enterprises requiring finance is late payments, with 84% of small and medium size enterprises suffering from this scourge. This has led to 92.5% having to access business finance within the past five years.
Other key stats from the white paper titled ‘The epic business loan battle: SMEs fighting for finance’ are as following:
60% of SMEs with 10-49 employees have used their overdraft in the past five years
A lack of access to additional finance would force 25% of SMEs to let employees go and many would struggle to remain profitable – 13% would have to close
Interest rates and fees and the speed of response were among the biggest concerns among respondents
Difficulties in obtaining this essential finance could prove detrimental to the UK economy as small and medium size enterprises contribute more than GBP 200 billion each year and make up 99.9% of all businesses.
For more information about Banking Circle, please check out a detailed profile of this company in our dedicated, industry-specific online company database.
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