Another worrying stat to come out of this report - based on 5,000 companies with less than 250 employees - is that around 15% of SMEs had thought of applying for cash, but hadn't bothered.
The bank of family & friends
There will be a variety of reasons - time and cost involved, typically - here but factor that mistrust into the picture and the overall rejection rate is even worse.
BDRC Continental director Shona Williams remains confident for larger players though. "Bigger SMEs are more likely to be offered what they want. For overdrafts, 83% of applicants with 10-249 employees got what they wanted straight away against 71% of those with nine or fewer employees."
Mentors neededSME bank funds isn't needed just for expansion. Cashflow is a huge problem for many SMEs, and the need to continue trading.
New online government initiatives like Mentorsme.co.uk may be useful props for some SMEs (backed by a rash of blue-chip banking names including HSBC). But mentoring isn't cash.
What about, in the meantime, some SME mentoring for banks? How many bank small business advisers have actually run a business themselves?
Links (opens in new window)