The overwhelming majority of small businesses in the UK that applied for finance in the first six months of 2018 were successful.
Market research firm BDRC conducted research on behalf of UK Finance, and found 85% of small businesses were able to secure a funding boost in the first half of 2018.
Despite high numbers of successful applications, 73% said they would rather grow their business more slowly than borrow to grow quickly.
Half of SMEs said they were being cautious because the future felt uncertain, while 48% of those expecting to seek finance in the future said they were reluctant to borrow in the current climate.
For 28%, the process of borrowing was the main reason holding them back.
Stephen Pegge, director of commercial finance at UK Finance, said:
“SMEs should be confident in approaching their bank for finance, although overall appetite for finance among SMEs remains subdued.
“Legislation and red tape, political uncertainty and the current economic climate are all increasingly cited as issues holding SMEs back, while only one in 20 see access to finance as a major barrier.
“This underlines the importance of the Government, finance industry and regulators continuing to work together to address these issues and help SMEs grow and prosper.”
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