Fewer SMEs using bank finance

The proportion of SMEs using traditional forms of finance fell in the second quarter of 2014, according to research by BDRC Continental.

BDRC’s latest figures revealed that 30% of SMEs used ‘core’ finance – overdrafts, loans and credit cards – in Q2 2014 compared to 36% in the same period in 2012.

The research found that:

  • the percentage of SMEs considering core products for future finance applications fell to 63%
  • 64% of medium-sized employers used external finance
  • 42% of firms had credit balances of £5,000 or more in the first half of this year.

Shiona Davies, director of BDRC Continental, said:

“SMEs continue to be in a more positive mood, with the economy now far less likely to be seen as a barrier to running their business. Use of, and appetite for, external finance remains broadly stable, but we are seeing declining use of, and appetite for ‘traditional’ core lending products like loans and overdrafts.”

Contact us for help raising business finance.