New Approach Needed for SME Finance?>
Small business growth is being hindered by a lack of access to finance as entrepreneurs struggle with antiquated bank assessments that rely too heavily on outdated manual processes and criteria.
In the 2016 National Small Business Survey business owners revealed that lack of funding or insufficient cash flow was the number one obstacle holding back their growth.
Of those surveyed, 25% had applied for some form of finance in the past 12 months, typically for growth, working capital, or equipment finance. Is this perhaps why in a recent study only one percent of SMEs that started with fewer than five employees were found to have grown to employ 10 people or more?
UK banks have made strides in empowering customers with technology-driven transaction options but continue to underperform in delivering the safety and security customers want. This may be starting to affect customer banking habits.