Aftermarket businesses are more likely to get accepted for finance than they think and could provide a significant boost to the economy if they applied, a new report out today suggests.
The British Bankers Association (BBA) survey of 15,000 small to medium-sized enterprises found that just 37 percent thought they would be successful if they applied for finance.
In reality, data shows that 67 percent of applications are successful, so the BBA has launched a new 12-month campaign to highlight the success rates and provides businesses with more advice on the types of finance available at www.betterbusinessfinance.co.uk.
BBA Chief Executive Anthony Browne said, “We’ve launched this campaign to let businesses know that they are a lot more likely to get finance than they think.
“This matter because more successful loan applications mean more orders for equipment, more new jobs and more plans to expand.
“Small businesses are the engine room of the economy and the research we publish today shows how much stronger our recovery could be if more SMEs approached their banks for finance.
If the businesses that had decided not to go for finance changed their minds, 3,000 UK companies would expand, 2,700 orders for equipment would be made and 6,5000 enterprises would have their spending power increased.
This sentiment is echoed by Professor Russel Briggs OBE, Independent Reviewer of the Appeals Process, who believes this announcement is positive for SMEs, along with the added focus on how to appeal against rejections or unsatisfactory terms from the bank.
He added, “Initiatives like this show that banks are working hard to make sure businesses know their right of appeal if their application is rejected.
“Entrepreneurs and SMEs should approach their bank knowing that they have the right to appeal any decision the bank takes.”
The BBA’s campaign will target businesses with a turnover of £25 million or less, using online advertising and social media. As well as providing wide-ranging advice on the various types of funding available for business by region, turnover and size of finance required, the betterbusinessfinance.co.uk
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