A recent study conducted by Shawbrook Bank has revealed that half of small business owners have had to dip into their personal savings to keep their companies afloat. The survey, which focused on small businesses seeking financial assistance in the past year, found that nearly half were left unsatisfied with the options available to them.
In response to the lack of suitable financing options, many small business owners turned to their own savings, credit cards, and other financial products to support their businesses. The situation was even more dire for larger companies with turnovers of up to £50 million, with 63 percent reporting the need to use personal funds.
Neil Rudge, Shawbrook’s head of enterprise, emphasized the importance of personalized support for SME customers. He noted that SME owners are looking for a relationship manager who can provide tailored financing solutions to meet their specific needs, something that is often only available to larger corporations.
Rudge also highlighted the impact of political uncertainty on SMEs, suggesting that the upcoming general election may cause businesses to put their plans on hold. To support SMEs, Rudge called on the next government to focus on cutting taxes, simplifying regulations, funding training programs, and improving access to both domestic and international markets.
Overall, the study underscores the challenges faced by small businesses in securing adequate financing and highlights the need for greater support from lenders and policymakers alike.