Small businesses see rise in trading but lag in financial support
Business owners reported an 11% rise in trading this month, however are continuing to report on the struggle to find suitable financial backing now that government-backed loans are winding down
Small business owners have witnessed an 11% jump in trading over the past month, however they are struggling to find suitable financial backing from outlets now that government-backed loans are winding down, according to a survey from ACCA UK.
The study, which was also conducted by The Corporate Finance Network (CFN), found that 100% of respondents believe that their businesses will return to pre- Covid levels of productivity and turnover within two years.
A further 57% said they would achieve this goal within 12 months.
Despite this, it was also found that 57% of respondents found it more difficult to obtain an overdraft and the same percentage struggled to obtain an unsecured business loan.
Some 43% of people also had problems qualifying for a commercial mortgage, which was a 10% increase from last month.
Glenn Collins, head of policy, technical and strategic engagement at ACCA UK, said: “Our survey shows business owners are still struggling to secure the right financial support.
“They are telling us that conventional and traditional sources of business finance, such as banks, are lagging behind and are making it difficult for them to complete even the most basic functions like opening bank accounts and securing an overdraft.”
He added: “We would like to see government working with finance providers to improve access to the right finance options to help to support recovery and we will be engaging with both parties on this matter.”
