UK Small Businesses Concerned Over Loans’ Availability

The results of a latest survey performed by BDRC Continental, UK-based independent research agency, suggest that over 30% of small and medium business in Great Britain are rejected for loans.

The survey was carried among 5,000 firms; half of the respondents said they had not applied for a loan in the past 12 months as they expect to be turned down.

In the opinion of BDRC experts, many SMEs do not applied for loans because they are either discouraged by banks or because they save money for their needs. Many of the respondents are also worried about the costs of loans.

Commenting on the findings, Mr. Walker of the Federation of Small Businesses, said that "The very smallest businesses are the ones bearing the brunt of a contraction in bank lending."

The British Bankers Association, in its turn, published a statement in which it said that "some businesses are concerned about the process and we will address this issue.  We are working to help SMEs access the finance they need. Banks are committed to providing SME’s with greater and easier access to finance."