Barclays has launched a mobile business lending service capable of providing instant loans to businesses. Though almost a third of British SMEs are not planning on applying for a loan despite acknowledging it would boost their business, the research shows that 64% of SMEs’ turnover would increase if they successfully secured the right loan, which could generate nearly 200,000 new jobs for Britain over the next four years.
The research found that:
- 30% of SMEs have decided not to apply for a loan despite thinking it would boost their business. The figure rises to 39% for small businesses specifically.
- SMEs who have applied for funding expect the lending process to take at least five weeks, whereas for many the funds are now available on their mobile, pre-assessed, so they can access funding within one hour.
- Removing the myth that banks don’t want to lend by making loans and overdrafts available instantly on smartphones could deliver an economic boost of 106 new jobs per day (+194,000 jobs by 2021) and £34.25bn of economic growth by 2021.
- In terms of the impact of new loans, manufacturing and professional services sectors should expect to benefit from the biggest economic boost by 2021, achieving an additional £1.18bn and £1.11bn each year, respectively.
- Business owners in Yorkshire and Humberside are the most concerned, of any region, about getting their applications right when applying for funding in the future.
Ian Rand, CEO of business banking at Barclays, said: “We recognise that some businesses are cautious about applying for a loan, whilst many more simply do not have the time. Our new, pre-assessed lending gives customers the ability to see how much they could borrow on their mobile and we can get that money to them more quickly than ever so they can invest in and focus on running their businesses. Since the EU Referendum our appetite for lending has not diminished and we continue to lend to an SME in the UK every four minutes.