There have been several new reports in the press recently highlighting some of the problems faced by smaller businesses in finding finance and surprisingly, it seems that some regions are faring worse than others.
Since its launch in November 2016, around 19,000 smaller businesses have been referred to the Bank Referral Scheme.Of these, approximately 1,600 businesses have secured funding, totaling about £91 million. The number of businesses in the North West that received funding is now approximately 155.
Business Lending Trends:
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- According to UK Finance, the outstanding balance of loans and overdrafts to small businesses by major banks fell by 6.9% nationwide between Q4 2015 and Q4 2017.
- Yorkshire saw a particularly sharp decline, with business lending decreasing by 27.5% during this period.
Northern Ireland:
- For the second quarter of 2024, UK Finance reports that 2,672 new loans were approved in Northern Ireland, amounting to £384 million. This represents 91% of all applications made in that period.
White Oak UK Funding:
- In the last year alone, White Oak UK fund over £500 million applications annually in funding to small businesses in the UK.
- For the second quarter of 2024, UK Finance reports that 2,672 new loans were approved in Northern Ireland, amounting to £384 million. This represents 91% of all applications made in that period.
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For the most accurate and up-to-date figures, consulting recent reports from HM Treasury, UK Finance, and White Oak UK would be advisable.
Andy Davis, managing director of White Oak UK, comments:
The true reality of the issue remains that UK businesses remain massively underfunded, and there’s still far too many businesses not knowing where to turn after a bank rejection – this needs to change.
Andy Davis comments further:
“Small businesses are without doubt, the back bone of our economy, so the idea that they aren’t getting access to the finance they need to progress is worrying, it’s a real barrier to economic success.
“As a provider of alternative finance to small businesses, we see many businesses in this situation. They are often strong, established firms, with great ideas, they just need the support of a provider who can put these requirements into context.
It’s important to get to know these businesses and fully appreciate their requirements. This one-to-one support is essential, as their needs are often too large or too diverse for a tick box.
Make money work for your business
Alternative lenders have been developing a wider range of business loan and asset finance products, that has given rise to a new wave of opportunity, with many businesses now choosing to spread the cost of many essential cash flow burdens.
Business loans are now available to cover a variety of costs (such as VAT, corporation tax, marketing costs, as well as to inject working capital) and asset finance can help businesses get the equipment they need when they need it.
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