Small firms struggling to find adequate funds

Small and medium sized enterprises (SMES) are struggling to find adequate funding to invest and boost their productivity, new research suggests.

Just 41 per cent of UK SMES have been able to access capital through their chosen funding route, while even those able to secure some form of funding have faced challenges, according to the study by merchant bank Close Brothers Group.

Of those smaller businesses that did receive funding – whether via banks, personal loans or specialist lenders – 34 per cent felt that it wasn’t sufficient for their investment plans. A further 24 per cent felt that the type of funding they had used was too expensive.

Adrian Sainsbury at Close Brothers said: “Low productivity hinders economic growth and improving [it] is vital, particularly as the UK prepares to leave the EU. Given their importance to the economy, SMES will be central to potential productivity gains.”