UK Finance responds to SME Finance monitor Q4 2017

Responding to the publication of the SME Finance Monitor for Q4 2017, Stephen Pegge, director of commercial finance, UK Finance, said:

“This research suggests there has been a recent uptick in demand for finance amongst SMEs, while banks continue to approve around eight in 10 applications from smaller firms.

“It is encouraging that increasing numbers of small firms are looking to use finance to grow their business in the year ahead.

“However, most SMEs are still self-funding, with the vast majority not seeking any new external finance in the past year.

“Just one in 20 SMEs see access to finance as a major obstacle, far behind issues such as red tape, the current economic climate and political uncertainty.

“It appears that most small business owners are carefully considering their options before seeking external finance, with larger SMEs more likely to borrow to help expand their business.”