Funding growth still a major concern for West Midlands SMEs

WHILE more than half of businesses in the West Midlands plan to seek funding for growth in the next 12 months, half of that number are worried that their bank will turn them down, a survey has revealed.

The figures come from the Close Brothers Business Barometer, a poll of UK SME owners and senior management on a range of economic and financial issues. 

Mike Randall, CEO of Close Brothers Asset Finance, said: “It is encouraging that many firms are planning for growth and seeking investment, but unless they can get access to funding it will be difficult to realise their ambitions.

“To successfully build long-term development plans, companies will require greater access to working capital. It is important they understand and explore the alternatives available to bank lending, especially if they fear being turned down.

“Our research found that over a fifth of firms surveyed in the West Midlands have been declined access to bank funding over the last six months, so the fears businesses have are not unfounded.”

The survey also revealed that a third of local businesses admit that their knowledge of alternative sources of finance could be better, while 16% say they are unaware of any alternatives to bank lending.