Lack of funds prevent business growth

A fifth of SMEs have missed out on at least 1 business opportunity in the past 12 months due to a lack of finance.

Research by Aldemore found that firms are missing out on an average of £77,651 a year due to missed opportunities.

Bigger businesses were more likely to have missed out on opportunities:

  • 32% of medium-sized businesses said that they have been heavily impacted by a lack of funding
  • 28% of small businesses are missing out on opportunities due to unavailable funds compared to
  • 15% of micro businesses and 9% of sole traders have missed out.

Carl D’Ammassa, group managing director, business finance at Aldermore, said:

“With more than two fifths of SMEs saying that their key business priority for 2017 is achieving business growth, it is frustrating to see that so many firms are missing out on business opportunities due to a lack of appropriate funding.”

Types of funding

Traditional bank lending such as overdrafts and loans provided 18% of the finance used by SMEs.

14% of funding came from alternative sources such as assets, crowd funding and invoice finance.

Contact us today to discuss business finance.