Credit, Collections & Insolvency News
New research conducted by RateSetter Business Finance reveals how credit conditions look to be tightening again, with over 400,000 small businesses now interested in finding an alternative to the banks for a loan. When asked, 32% of SMEs that had considered raising finance said that it was now harder than six months ago. During this period of uncertainty for SMEs, these findings come at a time when guidance is needed most.
As banks are progressively closing their branches and cutting back on front-line staff, businesses now need to go elsewhere to benefit from face-to-face contact before borrowing money. With over a third [39%] of small businesses preferring to seek advice in person, the move to online-only offerings and the closure of physical branches is a concern.
The research has also found that the majority of businesses that are looking for finance (63%), value speed and simplicity when obtaining a loan. RateSetter’s Managing Director of Commercial Finance, Paul Marston, explains how this is given priority when agreeing a loan.
“We know that the sooner we can put the money into the hands of the business owner, the sooner it can be put to work. We have built our processes around short applications, quick decisions and minimal paperwork and in many cases we’ve been able to provide money in a business’s account within hours of applying”. Our Regional Managers are all experienced lenders, who are there to guide business owners towards the right way to borrow, not just provide a simple yes or no”
This research indicates that alternatives to the banks, like RateSetter, are necessary for the continued growth of the UK’s SME market and the economy in general.
