A new study reveals that 85 per cent of finance applications made by small and medium-sized enterprises (SMEs) in the first half (H1) of 2018 were successful.
The findings, which come from market research group BDRC’s latest SME Finance Monitor, suggest that small businesses have good reason to feel confident when applying for funding.
According to BDRC’s report, eight in 10 SMEs were happy with the way their finance applications were handled by banks and lenders, while a similar number were happy with the final outcome of their application.
An impressive 85 per cent of all applications resulted in a facility, while almost three quarters (72 per cent) of SMEs surveyed were offered the exact facility they originally wanted and applied for.
The research also shed light on SMEs’ key habits and top needs when it comes to applying for finance.
It found that the vast majority of applications (67 per cent) made in H1 were for new or renewed facilities, while 60 per cent of applications for loans or overdrafts were made to the SME’s main bank.
It also found that just over three quarters (76 per cent) of applications were made in the name of a business as opposed to a director, while around a third (37 per cent) of applications were made online.
Commenting on the figures, Stephen Pegge, of UK Finance, said: “These figures show SMEs should be confident in approaching their bank for finance, as 85 per cent of applications are successful.
“It is encouraging to see six in 10 SMEs have a high level of trust in their main bank, which UK Finance and its members are working hard to improve further.”