Research from Shawbrook Bank has revealed that half of small business owners have had to dip into their savings to keep their companies afloat. The survey, which focused on small businesses seeking finance over the past year, found that nearly half were unsatisfied with the options available to them and turned to personal savings, credit cards, and other financial products to fund their growth.
For larger companies with turnovers of up to £50 million, the number of businesses using personal savings rose to 63 percent. Shawbrook Bank emphasized the need for lenders to provide more personalized support to small and medium-sized enterprises (SMEs) in order to facilitate growth and improve the borrowing process.
Neil Rudge, Shawbrook’s head of enterprise, highlighted the importance of SME owners having access to relationship managers who can help them find financing solutions that align with their short and long-term goals. He noted that this level of tailored support is often only available to larger, publicly traded companies or a select few.
With the upcoming general election causing uncertainty for SMEs, Rudge suggested that the next government should focus on cutting taxes, simplifying regulations, funding training programs, and improving access to domestic and international markets in order to support small businesses.