Banks continue to restrict overdraft lending.
Over the past ten years, the value of bank overdrafts to small businesses has fallen by 42%, down from £20.9 billion in April 2011. However, in this same period, overdraft lending to larger businesses rose by 25%. To us that sounds like the guys who don’t need the overdrafts are the ones who get them!
The UK business population continues to grow, with SME’s contributing some 86% to that result. So how can small business grow and succeed when funding is not appropriate to the rate of expansion?
Many business owners with whom we speak often say that “the overdraft is usually offered when you least need it”.
The problem is that with irregular income and little influence over debtor payment terms, and pressure from some larger entities who are managing their cash-flow at the expense of the small businesses, SME’s who were often reliant on overdrafts to survive are no longer being supported.
Yet, we know that most every business person sets out with an intention of making their business a success. Sometimes things don’t work out – and businesses do fail. At other times, a helping hand in a tough economy or trading period is all that is necessary to create success.
We see a wide range of applicants from all kinds of industries looking for anything from a quick cash injection, a property development fund or even long term restructuring finance. No two cases are the same, and the choice of products and lenders can make finding funding seem far more complicated than it really is. Let us do the work while you run the business.
If you are looking for an unsecured* flexible or revolving product with a limit of sub £25k, we can often get an offer produced within 2 hours of application.
*revolving, term loan, or credit card facilities for businesses may require one or more director personal guarantees but are otherwise unsecured.