SME’s have been in the news a lot lately, with many industry experts debating the trust between small businesses and big banks. As any business owner will know, having access to quick, flexible funding its vital to adapting to sudden changes in the market. But can you rely on banks to provide your company with a business loan when you need it most?
With this in mind, Think Business Loans outlines whether or not UK SMEs can really trust banks to deliver fast finance options and what this means for your company.
Struggle to obtain finance
Research shows that SME’s are consistently failed by the banks. According to Financial Director, over 50% of UK SME’s had to wait for at least a month for a funding decision in 2018. Furthermore, research from Close Brothers found that 12% of banks were unable understand the SME sector and a further 10% didn’t have the necessary understanding of borrower’s individual needs.
Why are banks unreliable?
So why are banks so unreliable when it comes to securing commercial funding? Since financial crisis of 2008, banks have become increasingly reluctant to fund small businesses. This is because they view SME’s as ‘high risk’, especially those which are not asset based or are IP based.
Despite making up 98% of the private sector and contributing £1.9 trillion to the UK’s economy, SME lending accounts for only 2% of banks’ balance sheets. As a result, many businesses are now SMEs searching for innovative funding sources to help increase their growth.
Funding your business
Alternative commercial lending is a vital option for SME’s looking to take out a business loan. While alternative lenders may be less recognisable than the big banks, they are able to cater to the individual needs of your business. That way, you can secure the right product to help your company grow.
But with so many alternative lenders on the market, finding one that suits your company can be difficult. Consulting with a business loan broker will help you navigate through complex world of cashflow facilities and unsecured business loans to find you the best product at a competitive rate.
Secure a business loan
A commercial finance broker offers more than just a business match making service. At Think Business Loans, we are the UK’s first and only commercial finance brokerage that combines industry leading technology and human expert lending managers.
Our iFunds technology is an world-beating matching platform that matches SME’s criteria and searches over 200 lenders. iFunds works with businesses in mind, by helping them search and compare lenders in just three minutes. Our technology has helped fund many businesses, once turned away by the banks, who have gone on to grow exponentially over the next few years.
If you would to know how our commercial lending platform can assist your business loan application, get in touch with our lending managers today.
Jessica Court graduated from the University of Portsmouth in 2017 with a bachelor’s degree in Media Studies. She has previously worked within the In... Explore Author