A STRONG DEMAND FOR FINANCE

One thing our SME survey data clearly exposed was that demand for funding remains robust. Some 89% of the SME owners we polled said they will be looking for finance in the next 12 months.

Around 43% said they expect to apply for finance to ensure their business stays afloat, while 37% told us that they would be looking to refinance their existing debt—this may be a result of some business owners wanting to protect themselves from further interest rate rises.

Encouragingly, over a quarter said that, despite the potential recession, they would still be looking for funding to invest in new initiatives and products. Moreover, 22% told us that they would be seeking additional finance to fund expansion.

So, while there is a clear demand for finance simply to keep businesses’ heads above water, the good news is that there’s also plenty of businesses out there still grasping at opportunity for growth and evolution.

The Role Of Banks And Brokers

It’s clear that a lot of responsibility here rests on the shoulders of banks to meet that demand, and brokers to help businesses find the right partner to provide it.

As we learnt before, 17% of businesses cited a lack of funding from banks as their main challenge currently. Similarly, when asked what more a bank could do, 17% said loans should be made more affordable, while the same amount said there should be greater range of options.

Some 10% also told us they needed greater clarity around borrowing. Clearly, there’s demand here for banks to improve their communication and transparency. However, this also highlights the critical role of a broker’s expertise in helping businesses find the right type of funding and finance provider at a time when firms are most in need.

Do you expect to apply for additional funding in the next 12 months for any of the following reasons?

What more, if anything, do you think your bank could do to help you with current economic challenges within the next 6 - 12 months?

Lower rates on loans

Offering better financial facilities/more product options

Lower interest rates (General)

Provide better customer service/support

Transparency and understanding

Reduce service/bank fees

Offer suitable products/services

Flexibility with overdrafts

More flexibility with loans/ offering more loans

Flexible/good rates on accounts

Other

Nothing/nothing else/they are doing as much as they can