Member Article

'Lack of funding' loses SME sales

SMEs across the country are missing out on business opportunities worth around £52 billion due to a lack of funding, according to new figures released yesterday. More than one in 10 established SMEs across England each lost an average of £1.39m of additional sales, say the report from GE Commercial Finance. Of those businesses that said they had missed out on opportunities, over a quarter missed out on at least one business opportunity, more than half missed between one and five prospects, and 18% had missed out on five or more opportunities.

John Jenkins, CEO of GE Commercial Finance, Business Finance, said: “With firms across the country predicting a healthy year of growth, it is vital that they secure the right amount and type of funding early on if they are to achieve their goals and minimise missed opportunities.”

The North East has the highest percentage of firms that have missed out on more than five opportunities, with 29% of firms saying they have been in this position. Businesses across the North West are the worst affected, with 15% of companies in the region annually missing business opportunities worth £6m each.

Just over a fifth of all the firms questioned said they would like more advice on the advantages and disadvantages of different types of funding. A further one in five (18%) said they wanted help with putting the right funding structure in place for their business, and nearly one in six (16%) said they would like help with choosing the right provider.

Mr Jenkins said: “With the high number of firms missing opportunities due to a lack of funding, combined with the recent interest rate rises, it is now more important than ever that firms consider alternative forms of finance as a means of securing the right funding at the right cost.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .