88% of SME Applications Successful in Q2
The demand for SME finance is continuing to increase with increased success rates also improving according to the latest data from BVA BDRC.
Between April and June, 88% of applications were successful in Q2, rising to 95% of those who have applied for pandemic related funding (mostly through Government backed schemes).
21% of SMEs have said that they are using more finance than before the pandemic, including 11% of all SMEs now borrowing where they haven’t been before. While 7% have taken on extra finance on top of their existing borrowing and 3% that had the same level of facilities but were using them more.
Reports have stated that 15% of SMEs have reported that they have a need for funding, an increase of 9% in 2020. The main reason for the finance was typically to fund cash flow (85%), rather than business development (19%).
9% of all SMEs (22% of those currently using finance) were concerned about their ability to repay the funding they have, and this increased to 30% of those new to borrowing.
Looking forward, the economic climate remains a barrier however for fewer SMEs than previously. The majority reported being unaffected by the end of the EU transition period but the 26% that had been negatively impacted were more likely to see other barriers to their business.
Despite improving application success rates those considering a future application remained less confident of success than pre-pandemic. Overall, growth ambitions were back in line with 2019 as 52% of SMEs plan to grow.
Are you looking for a finance facility for your business?
If you’re looking for a finance facility to help your cash flow, invest in your business, purchase new machinery or equipment, we’re confident that we’re able to help as we provide a full suite of commercial finance solutions.
- Hire Purchase & Leasing – Mostly used to purchase machinery, vehicles and equipment. The key difference between the two is the ownership at the end of the agreement.
- Invoice Finance – Short term borrowing against any outstanding (receive funding based on what your customers owe to your business) or sell your unpaid invoices to a third-party factoring company.
- Development Finance – It is a type of funding used to finance the construction, conversion or heavy refurbishment of a building. It’s usually a short term loan to fund a building project.
- Business Loans – This type of funding can be used however you like from acquiring other businesses, paying off any existing debt, employing more staff, or to purchase more stock to sell.
- Asset Refinancing – A refinance can help provide a helpful injection of working capital into your business at a time when it needs it most.
If you would like more information about the different finance options that are available or would like any assistance in arranging finance for your business, don’t hesitate to get in touch with our team. Call us on 01270 443510 or complete our contact us form & we’ll be in touch as soon as possible.