Latest study shows bank lending still low and businesses feeling the ‘broken bond’

A recent study, conducted by online auction giant eBay, has illustrated that there is still a lack of lending to small businesses from banks, and that the ‘broken bond’ still very much exists, causing British businesses to snub banks.

The survey findings showed that 65 per cent of businesses felt that banks were not lending as they should, and 60 per cent saying they found it more difficult to get credit than it was five years ago (prior to the coalition Government taking over.)

We can echo that; from our experience in helping businesses in trying to access finance, we have found that banks have certainly tightened the purse strings and lending is more challenging. Furthermore, the low levels of trust in the banking sector has driven business owners to seek alternative funding methods.

This is why alternative finance sources have become more popular and explored. For this reason, we have found ourselves helping clients more and more in accessing other types of finance, advising them of the pitfalls, benefits and best ways to prepare, to ensure whatever type of finance they’re choosing to seek, it is the right decision for them and they can make an informed decision based on sound advice.

We like to think this has increased our expertise in the area, as well as allowing us to develop solutions to help with this kind of work specifically. Whether it’s helping clients gain funding from family members, crowd funders or other finance facilitators, such as invoice factoring, for instance, we have been involved extensively.

We have also found that we can help clients prepare the right financial reports to improve their chances of accessing bank finance, as banks still provide a great source of lending if the right terms can be negotiated and the right information to support the finance applications can be gathered.

Any financing arrangement revolves entirely around planning – having control over finances and knowledge of what financiers are looking for can be the key to success.

Any client or business owners looking to explore finance methods and looking for guidance on preparation can get in touch on 01827 54944 to find out more.