Many small firms in the UK face challenges when it comes to finding and applying
for funding, according to a report published by the Federation of Small
Businesses (FSB).
The FSB's report found that 'widespread uncertainty' exists among small
businesses in regard to where to get information on the types of finance
available to them.
Two thirds of small firms stated that they are planning to make some form of
investment in their business by 2024. However, only 49% said that they have
information on the different types of financing options available to them.
The FSB has urged the government to 'take action to improve the financing
landscape for small businesses'. It recommends introducing a VAT-based
capital investment incentive; encouraging the use of the Bank Referral Scheme;
and expanding the Start Up Loans Scheme from 11,000 to 15,000 loans per year.
Martin McTague, National Chair of the FSB, commented:
'Small businesses that cannot access finance are small businesses that are
cut off from opportunities to grow and expand. It's that simple.
'As a country, we cannot afford to have a repeat of the post-credit crunch
scenario, where the dreams of thousands of entrepreneurs and business owners
were crushed by a withdrawal of finance options, leaving them unable to
continue and deepening the UK's economic woes.
'Many small firms now are in a highly precarious position, carrying debts
from the pandemic, with the Bank of England raising the base rate, and with
funding options getting scarcer and costlier.'
Internet link: FSB website