4 in 10 small businesses say access to affordable finance is their biggest challenge
Millbrook Business Finance has conducted a survey with hundreds of small and medium-sized enterprises (SMEs)*, which has shed new light on what’s causing concern and what help could make the most difference with access to affordable finance being a notable issue.
SMEs were asked: “What is the single biggest challenge facing your business right now?” and their responses show clear priorities:
- 35% said access to affordable financ
- 14% highlighted rising operational costs
- 14% noted economic uncertainty
- 13% cited late payments
- 11% pointed to high taxes
- 7% identified staff recruitment or retention
- 6% mentioned government regulation
Access to affordable finance leads by a wide margin. It’s followed by rising costs and wider uncertainty both at 14 %. Late payments remain a significant concern, too.
When asked: “Which area would provide the greatest benefit to your business right now?”, SME priorities shifted slightly:
- 38 % most want easier access to finance
- 29 % flagged lower operational costs
- 16 % want faster payments from clients
- 11 % would benefit from more skilled staff
- 6 % said clearer guidance on regulations
Again, easier access to finance tops the list. Lower costs and faster payments rank next.
Justin Amos, managing director of Millbrook Business Finance, said: “These figures speak plainly. Finance is the top concern. SMEs want support in two areas: keeping cash flowing in through faster payments and securing affordable borrowing.
“Costs come next. Almost 30% of businesses say reducing operational costs would bring the greatest benefit. Add economic uncertainty to that, and it’s no surprise firms are cautious about investment, hiring and planning.
“Labour shortages and tax pressures matter, but they are not as urgent as funding, cost and cash flow. Since we set up Millbrook five years ago, we’ve helped hundreds of businesses tackle such issues and obtain the funding they needed to achieve their aims.
“The focus should be clear:
- Finance providers should simplify loan terms, speed up approvals and offer fairer rates.
- Business leaders should improve invoicing discipline, chase payments on time, review contracts, and consider early-payment incentives.
- Policymakers should provide stable regulation, targeted tax relief and practical help on rising costs such as energy and rent.
“SMEs are asking for practical, workable measures and not promises.”
* Over 100 SMEs responded to Millbrook’s survey.