And the report claimed that 34% of small and medium sized business owners are turned down for capital on their first application.
The findings have prompted Marc Glazer, chief executive of business financiers Boost Capital, to raise concerns that the raft of initiatives previously set in place for SMEs have been ineffective.
He said: “So many of the UK’s SMEs are struggling to get funding via traditional lenders. Despite the government proposals intended to help we have yet to see any significant impact. We believe it is essential that SMEs with growth potential have access to financing without a prolonged, difficult process. That’s why our goal is to provide capital in as few as five business days.”
Glazer said Boost Capital has secured a “significant” credit line which it will be passing on to SMEs across the UK.
He added: “There are a great many SMEs with solid finances who are struggling to get access to capital to fulfil their growth plans. Without a much-needed boost, SMEs cannot contribute to the country’s economic recovery that everyone is hoping for.”
