Usage Of Finance By SMEs

The SME Finance Monitor that is produced by BDRC Continental for the 3 months to April 2017 provides some interesting data relating to the usage of business finance for SMEs here in the UK. Below we mention some of what is contained in the document.

A significant number of SMEs here in the UK require business finance to help them grow.
Many SMEs require business finance to help them grow here in the UK.

The number of SMEs that were prepared to use business finance to grow is lower than that seen in 2016. For instance, in the 3 months to April 2017, 35% of SMEs were prepared to consider using finance for this purpose yet in 2016 it never fell below 42%. Back in the second half of 2014 there were 50% of SMEs prepared to use finance for growth yet in the 3 months to April of this year the figure had reduced to 44%. The percentage of SMEs with no employees prepared to use business finance for growth back in the second half of 2014 was 39% yet by the period February to April 2017 that figure had dropped to 33%.

The amount of external finance used by SMEs in the second quarter of 2016 was 36% but this grew significantly to 46% in the three months to December 2016. However, by the three months to April 2017 this figure had fallen to 37%.

In the three months to July 2016, 50% of SMEs were classed as “permanent non borrowers” and 35% of SMEs used external finance. By the three month period to April 2017, 47% of SMEs were “permanent non borrowers” and 37% of SMEs utilized external finance.

There has been a fall in the percentage of SMEs who decided to inject monies into their businesses from their personal savings with 43% of business owners doing this in 2012 compared to 31% in the three months to April 2017.

In the first quarter of 2016, 14% of SMEs with no employees were planning to apply for business finance whereas in the three months to April 2017 this had fallen to 9%. For SMEs with 50 to 249 employees in the first quarter of 2016 14% were planning to apply for finance and that percentage remained the same in the three months to April 2017.

We trust that you have found the above data relating to business finance for SMEs of interest. The full report can be viewed on the website of BDRC Continental.

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