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Lack of Funding Leads to Missed Business Opportunities
A lack of available funding has resulted in at least one missed business opportunity for small and medium-sized enterprises (SMEs) in the UK in the past 12 months.
According to the latest Future Attitudes report by Aldermore Bank, just under a quarter (23%) of SMEs, which amounts to around 1.27million businesses across the UK, are missing out on new business opportunities due to a lack of available funding. This is a 4% increase on the previous year.
Those impacted are losing out on income worth an average of £78,942 a year, which is an increase of £1,291 compared to 12 months ago (£77,651).
Medium-sized businesses – those with between 50 and 249 employees – are the worst hit, with over two fifths (42%) saying that they have been significantly impacted by not having access to the funding they need, up a third (32%) on last year. This amounts to an average impact on income of £110,960 per mid-sized organisation affected over the last 12 months.
Looking at the main business concerns for UK SME leaders over the coming months, the topic of available funding is a common one. Just under a third (32%) say accessing appropriate funding and cash flow issues are their biggest business issues, with late payments also being the main worry for one in seven (15%) of SME bosses.
“It is deeply concerning that, despite the ongoing Treasury Select Committee inquiry into sources of SME finance, the amount of businesses missing out on these opportunities has increased over the last twelve months,” said Carl D’Ammassa, Group Managing Director, Business Finance at Aldermore. “It is vital that lenders work closely with small and medium-sized companies to help them find solutions to their funding issues, ensuring new business opportunities are capitalised on.”
For expert legal advice on business funding, and other areas of commercial law, then contact our specialist commercial lawyers today.