Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • New Venture Aims To Help Propel Growth For Start-Ups
  • Building community, one cause at a time
  • How to build a £1 million pension and ISA portfolio
  • 5 Reasons Why Every Office Should Include Flexible Spaces to Work and Their Key Benefits
  • Pension reforms risk higher prices, fewer jobs and slower growth, FSB warns
  • Building Trust in AI Through a Decision-Centric Approach in Manufacturing
  • In Profile: Michael Stausholm, founder and CEO of SproutWorld
  • A beginner’s guide to growth shares (and why they’re so popular right now)
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Finance»Banks won’t lend to us, say more than a quarter of UK’s businesses
ALTERNATIVE LENDING

Banks won’t lend to us, say more than a quarter of UK’s businesses

0
Posted By sme-admin on September 14, 2022 Finance, News

London, UK, 12th September 2022: New research exposes the difficulties businesses face accessing finance from mainstream lenders and how alternative solutions can plug the gap.

More than a quarter (26%) of business leaders surveyed have had difficulties accessing finance from main banks, over a third (38%) say that banks don’t understand their business needs and two in five (41%) think banks’ lending policies haven’t kept pace with modern business needs.

The research from embedded finance and payment solutions provider, Sonovate, follows a recent announcement from the Financial Conduct Authority (FCA). The regulator warned banks to improve their treatment of small business owners after a review found ongoing instances of lenders treating small businesses unfairly when it came to areas including a sustainable payment plan, identifying and supporting vulnerable customers, and ensuring fairness. Indeed, a third (35%) of those Sonovate surveyed said that banks provide them with no other service or support beyond lending.

The research also showed that businesses which turn to non-traditional forms of finance instead are seeing tangible benefits. Over a third (37%) of businesses surveyed say that alternative lenders make it easier to access funding, and three-quarters (76%) say that invoice financing tools have greatly benefited their business, with around two-thirds (64%) citing faster transactions and business processes as key advantages.

While there is clearly a role for non-traditional forms of finance to provide improved services to businesses, Sonovate’s research exposes how few businesses make use of these types of services. Only 5% surveyed secured a loan or accessed invoice finance from an alternative lender in the past 12 months.

As the cost-of-living crisis continues to impact businesses across the country, being able to access finance quickly is hugely important. This is even more true when it comes to payroll, particularly for contract worker pay – 27% of businesses surveyed admitted to taking more than 90 days to pay contract staff, which is not a viable operational model. Other research* shows that four in ten (44%) small business leaders expect to accelerate their finance plans in response to the prospect of further rate hikes that the Bank of England is expected to implement in the coming months.

Richard Prime, co-founder and co-CEO at Sonovate, said: “It is evident that business owners across theRichard Prime, co-founder and co-CEO at Sonovate country are struggling to access finance through traditional means. On the whole, banks and mainstream lenders have not kept up with the needs of today’s businesses, and lack the agility, scalability and speed to provide organisations with critical funding.

“Alternative finance is perfectly positioned to plug this gap, and provide business owners with a lifeline through what is an incredibly challenging period, where funding is likely to be needed more than ever to grow the business. With the rate hike looming, now is the moment for businesses to consider all their options and make a decision that is right for the organisation in the long-term.”

The Sonovate platform delivers flexible funding and a bespoke technology platform to streamline and automate the tasks related to funding and managing contract worker placements and freelancer projects. By embedding Sonovate’s invoice finance solution, cash and resources are freed up, enabling recruiters, consultancies and labour market places to focus on growing their business in the UK and internationally.

 

The survey was conducted by Opinium, on behalf of Sonovate and surveyed 500 senior decision makers at small and medium sized enterprises (between 1-249 employees). Of which, 264 currently or have used freelance/contract workers in the past.

*Research from asset management firm, Close Brothers, published August 2022.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

New Venture Aims To Help Propel Growth For Start-Ups

How to build a £1 million pension and ISA portfolio

Pension reforms risk higher prices, fewer jobs and slower growth, FSB warns

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
Verify your identity for Companies House

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
Events Calendar
    • Marketing
    July 7, 2025

    Bold Business Marketing Specialist Speaks In Swindon This Week

    July 4, 2025

    How Generative AI is Giving SMEs a Marketing Edge

    • Finance
    July 10, 2025

    How to build a £1 million pension and ISA portfolio

    July 10, 2025

    Pension reforms risk higher prices, fewer jobs and slower growth, FSB warns

    • Health & Safety
    July 1, 2025

    Temperatures Soaring: Is Your Workplace Becoming Unsafe?

    January 29, 2025

    UK takeaways guilty of shocking hygiene failures:

    • Events
    July 4, 2025

    £20k grant for female-founded SME up for grabs

    July 2, 2025

    As Seen on BBC Panorama – Brad Burton to Headline The South West Expo in Swindon

    • Community
    July 11, 2025

    Building community, one cause at a time

    June 23, 2025

    Celebrating One Year In Fairford Supporting The Community

    • Food & Drink
    June 23, 2025

    England Cricket Captain, Ben Stokes OBE, takes a stake in Spencer Matthews’ alcohol-free spirits brand, CleanCo

    June 16, 2025

    Hospitality industry risks collapse

    • Books
    April 24, 2025

    Values-Driven Professionalism: A Path to Client Loyalty

    December 2, 2024

    Banish the banshee boss: how to lead without fear – addressing the issue of fear-based management and how NOT to be this manager

    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Most Recent Posts
    July 11, 2025

    New Venture Aims To Help Propel Growth For Start-Ups

    July 11, 2025

    Building community, one cause at a time

    July 10, 2025

    How to build a £1 million pension and ISA portfolio

    July 10, 2025

    5 Reasons Why Every Office Should Include Flexible Spaces to Work and Their Key Benefits

    July 10, 2025

    Pension reforms risk higher prices, fewer jobs and slower growth, FSB warns

    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health

    Copyright © 2020 SME Today.

    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.