Small businesses are finding it increasingly difficult to access
credit. According to research by the Federation of Small Businesses
(FSB) two thirds of smaller organisations think that the
availability of credit is poor.
The 'Voice of Small Business' Index showed that during Q3 of
2012 21.6 per cent of respondents had applied for finance, this was
down by one per cent when compared to Q2. However the number of
refusals increased from 40.6 per cent in Q2 to 42.4 per cent in
More than 60 per cent of firms also said that finance is
unaffordable, this has increased each quarter in 2012. Despite
these figures half of the 2,600 respondents want to grow in the
coming 12 months.
National Chairman of the FSB, John Walker, said: "It is
frustrating that bank finance is still difficult to get. No matter
what is said about the demand, more than 40 per cent of applicants
have been refused each quarter this year. This has to change if
growth aspirations are to be met."
There are a number of ways you can improve your chance of being
approved credit. Regularly checking your credit score and credit
history allows you to spot reasons why you might be refused credit
before you apply. Getting a credit report allows you to see what
other businesses and banks see. You can apply for a free credit
report from Graydon UK today.
The survey also measures the optimism of small firms. The index
showed small firms' confidence fell from 5.8 points to -4.5 in the
third quarter. Across the UK 10 in 12 regions saw a decline in
confidence, only London and the East Midlands (covering Derby,
Leicester, Lincoln, Northampton, Nottingham) remained
Challenging domestic conditions, access to finance and weak
consumer demand were blamed for the pessimistic views. For the
10th consecutive quarter firms reported a fall in
revenues meaning cash flow is further constrained.
Will be British Business Bank be the saviour that all
businesses are waiting for?