Research carried out by the Federation of Small Businesses (FSB) has found that small firms are struggling to access finance, with the success rate of finance applications falling by 10% in three months.
Just 53% of credit applications were successful in the last three months of 2023, according to the business group. This was a significant fall when compared to the 62% success rate recorded in the previous three months.
The FSB revealed that of those who were successful, 33% were offered an interest rate in excess of 11%.
55% of firms sought finance for cashflow issues, whilst 19% applied for finance to expand their business and 15% wanted to upgrade equipment.
Commenting on the data, Caroline Lavelle, Chief Commercial Officer at the FSB, said: ‘For 50 years FSB has been supporting its members to run and grow their businesses, including by providing tailored products and services to address the biggest needs of the day.
‘It’s clear that access to affordable finance has become harder recently.’
08/02/2024
View all >
01/05/2024
HMRC online NIC payment service
HMRC has launched a new online voluntary national insurance payment service.
READ MORE
HMRC tax rules for WFH commuting
HMRC has updated guidance on when tax relief is available on travel expenses for staff who work from home.
FSB calls for Ofgem to 'take action'
The Federation of Small Businesses (FSB) has called on the energy regulator Ofgem to ‘take action’ on the standing charges paid by UK small firms.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.