SME owners ‘are relying on alternative financial resources’

  • Posted

Posted 07/10/2010

Owners of small to medium-sized enterprises (SMEs) are seeking financial support from providers other than banks in a bid to beat economic difficulties.

This is according to a new study by More Than Business, which showed that one in five entrepreneurs has sought assistance elsewhere recently to help their company stay afloat.

A collective 14 per cent approached credit card or loan companies, but ten per cent generated funds from friends or family members.

Meanwhile, 58 per cent of SME owners said they fear they may go out of business should a double-dip recession occur.

More Than found that costs for SMEs have risen significantly over the past year, with the manufacturing industry the worst affected.

Spokesperson Mike Bowman said: “SME cash flow is suffering and in a slow recovering economy, some small business owners may be unable to rely on financial support from banks.”

Last month, Luke Johnson, owner of Risk Capital Partners, told the Financial Times that anyone thinking about buying a business could consider taking on shareholding partners as a way of preventing debt.


    How can we help you?

    Please fill in the form and we’ll get back to you as soon as possible or to speak to one of our experts call
    0330 404 0749

    I accept that my data will be held for the purpose of my enquiry in accordance with Ashtons
    Privacy Policy

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    How can we help?

    If you have an enquiry or you would like to find out more about our services, why not contact us?