Research published by banking group Close Brothers has suggested that small and medium-sized enterprises (SMEs) are struggling to access the funding required to grow their business.
The bank found that only 41% of UK firms are able to access finance from their preferred source, with a further 23% stating that while they are able to access the funding they require, it is often not supplied by their preferred provider.
5% of those surveyed said that they wouldn’t know where to access capital that they require, and an additional 33% use an overdraft to help finance the expansion of their business, the research found.
In addition, Close Brothers revealed that the British Business Bank supplied over £3.1 billion in finance to UK SMEs last year.
Commenting on the findings, Adrian Sainsbury, Banking Division Manager at Close Brothers, said: ‘Low productivity hinders economic growth and improving productivity is vital, particularly as the UK prepares to leave the EU.
‘SMEs need access to the right finance and support to invest in training staff or adopting new technologies, so increasing awareness of financial options is crucial.’