Do businesses feel unsupported to traditional lenders?
The majority of SME’s in the United Kingdom do not trust traditional lenders to support their businesses to grow and scale up.
Investing from their own Resources
More than a third of businesses (35%) surveyed by Hitachi Capital Invoice Finance try to avoid borrowing money at all costs and would rather invest from their personal savings than borrow from another source.
The main reason for not wanting to borrow money, is that companies want to owe as little as possible (53%), with a further one in ten admitting that borrowing money has led the business into further debt in the past.
Little Trust of Traditional Lenders
Of the 502 business owners surveyed, just 15% said that they completely trust traditional lenders, and the main reasons for not trusting them is because of a bank’s reputation (37%), followed by previous (30%) and personal (26%) experiences and for security reasons (26%).
The media does not appear to affect business owner’s attitudes towards traditional lenders (9%).
Andy Dodd, managing director at Hitachi Capital Invoice Finance said: “It’s interesting to see business owners remaining cautious with regards to business funding, potentially restricting their ability to grow
“More than 20% also noted that maintaining their cashflow is a top concern for them for the year ahead, and indicates this is something they are currently struggling to manage.
“It is important for business owners of any kind to be aware of the funding options available to them and what they are eligible for, as there are a number of options available to help prioritise overdue payments and maintain financial resource, particularly outside traditional lenders.”