Fear of restricted lending hindering growth, survey shows

ALMOST a third of North West businesses may be missing out on access to finance simply because of fears about approaching their bank, research suggests.

One in three respondents in the Business Finance Barometer, independently commissioned and published by Close Invoice Finance, said they hadn’t asked for increased credit from their bank for fear of either being turned down, or the bank deciding to increase the cost of their existing borrowing.

Ian Steward, local head of Close Invoice Finance said; “At a time when the country is struggling to get back on its feet, it’s astonishing that small businesses, the very engine room of our economy, find themselves in a situation where they not only feel unable to access funds to grow, but actually lack the confidence to even ask for it in the first place.”

According to the survey, 32% of businesses in the region aren’t happy with the level of personal service they are receiving from their bank.

Steward added:  “Ironically, our last Barometer showed us that the majority of firms remain reluctant to change provider – perhaps a case of better the devil you know.”

The Business Finance Barometer is published on a quarterly basis, canvassing the views of 500 SME owner managers across the UK on a range of financial issues.