Half of small business owners have had to raid their savings to fund their companies, according to research from Shawbrook Bank.
The survey of small businesses that applied for finance from lenders over the past year found almost half said it did not meet their needs. As a result, they used their own savings to scale their businesses, alongside credit cards and other finance products.
Among bigger companies with turnovers of up to £50million, that figure rose to 63 per cent. Shawbrook said lenders must step up personal support for small to medium-sized enterprise (SME) customers and aid growth by improving the borrowing process.
Neil Rudge, Shawbrook’s head of enterprise, said SME owners also want a relationship manager they can talk to, to find financing solutions that meet their short and long-term needs. “The tailored support they crave is often reserved only for large, publicly traded firms or a privileged few.”
Uncertainty caused by the general election may cause SMEs to pause their plans, he added. To help SMEs the next government must cut taxes, simplify regulation, fund training schemes and improve access to home and international markets.
