30% of SMEs say lack of funds is their main barrier, according to research from the Close Brothers Business Barometer.
As the UK economy emerges from recession, new research has shown that two thirds of businesses report plans for growth but that despite these aspirations, 30 per cent of these companies are unable to access the necessary funds to pursue them.
The findings, from the Close Brothers Business Barometer, also reveal that 36.3 per cent of SMEs surveyed throughout the UK are finding it more difficult than usual to achieve growth, whilst a further 16.1 per cent are finding it near impossible.
David Thomson, CEO of Close Brothers Invoice Finance said:
“We’re now officially out of recession, so it’s no wonder SMEs are focusing on expansion and driving the economy back towards prosperity. Their plans and the tenacity and determination that firms across the UK have shown are to be applauded.
“However, without access to vital funding, these plans will come to naught. It is more important than ever that credit flows to businesses and while traditional lending may not be readily available, there are a number of other options that companies can avail of to ensure that they can not only plan, but realise growth in the months ahead.”
The research also found that 29.3 per cent of businesses were unable to pursue growth due to a lack of resources or skills in their organisation. This issue is more evident in businesses with a turnover of £5 million plus and is especially evident in industries such as engineering [60 per cent] and the public sector [40.9 per cent].
“Our research clearly shows that access to finance is one of the most pressing issues facing UK businesses. Whether to fund expansion, resources or staff development, the need for businesses to find a lending solution that will suit their plans for growth is key.
“Invoice finance can do just that and our message is clear; we’re open for business. We’re working with SMEs from all sectors across the country, offering tailored funding packages that support and encourage growth,” Mr. Thomson added.
