"It will be interesting to see whether the Government, whichever it may be, will be able to deliver on the support the sector has to have to make these ambitions a reality."
- Ryan Etchells, chief commercial officer at Together
As rampant inflation finally eases, the UK could be on the brink of a potential SME boom with business owners and leaders ready to invest an estimated total of £2.4 trillion over the next two years if they can overcome the funding challenges that are currently holding them back.
Research from Together finds that 12% of SMEs have been denied or rejected for an approved loan from a mainstream lender in the last 12 months - significantly dampening investment ambitions and resulting in 21% of business leaders and future entrepreneurs delaying innovation projects and new product launches, as well as 20% refraining from expanding their workforce.
The research also finds further barriers to lending, with 17% of SMEs being denied or rejected business or personal credit cards and 10% being unable to remortgage a business or property in the last 12 months.
As a result of being denied finance, 29% have put off moving premises, 27% have put plans on hold to expand property portfolios, 25% have missed out on potentially lucrative property deals, 22% have delayed refurbing premises, and 11% haven't invested in machinery, vehicles or technology.
A further 55% state that they have no choice but to identify alternative finance sources or providers to fulfil their business objectives and 14% of UK SMEs have used a bridging or short-term loan to support growth in the past.
Ryan Etchells, chief commercial officer at Together, commented: “The UK’s 5.5 million small and mid-sized business owners are champing at the bit to realise their investment and growth plans over the next two years.
"It will be interesting to see whether the Government, whichever it may be, will be able to deliver on the support the sector has to have to make these ambitions a reality. Further stabilising the dire impact of energy, labour and running costs is a must, as well as ensuring that the new party in power understands the financial support that these businesses need.”
