A recent study conducted by Shawbrook Bank has revealed that half of small business owners have had to dip into their personal savings in order to keep their companies afloat. The survey, which focused on small businesses seeking financial assistance from lenders in the past year, found that nearly half were unsatisfied with the options available to them. As a result, many 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 that they had to use personal funds to fund their operations. Shawbrook 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 the tailored support often reserved for larger corporations should be extended to SMEs as well.
Rudge also pointed out that the uncertainty surrounding the upcoming general election may cause SMEs to put their plans on hold. To support these businesses, he suggested that the next government should focus on cutting taxes, streamlining regulations, investing in training programs, and enhancing access to both domestic and international markets.