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
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