Most SMEs unable to access funding for growth

MORE than half (55 per cent) of small- and medium-sized enterprises (SMEs) in the UK are unable to access the funding they need to grow, a survey suggests.

The main hindering factor is a lack of education or understanding of their funding options, according to the poll of 200 SMEs by small business finance provider Liberis.

Read more: P2P lending soars but SMEs generally wary of finance

The survey found 62 per cent of SMEs said they need funding to grow and expand, but 57 per cent were unsure which provider to obtain funding from and 53 per cent did not have a set amount in mind when looking to access finance.

A fifth (22 per cent) of businesses said they require funding to maintain business as usual, while five per cent said they needed it to survive past the first year of business.

One in 10 are considering crowdfunding as a means for funding in the next two years.

Read more: National investment bank needed to boost SME lending

Rob Straathof, chief executive at Liberis, said urgent action and collaboration is crucial to prevent a lack of SME funding damaging the UK economy.

“Without sufficient financial education and support, the UK’s business ambitions will be severely affected, but by ensuring they have the correct financial understanding we can help secure and strengthen their livelihood, fast-tracking their ambitions,” he added.

Read more: New firm launches to back high-growth SMEs