Void left by traditional funding shows no signs of shrinking

The void left by traditional funding shows no signs of shrinking, with 79% of SMEs surveyed by Reward Funding being denied finance from banks and other traditional lenders.

Nick Smith, Group Managing Director for Reward, commented. “It appears from our research that traditional funders are still not lending to SMEs at the levels needed, prompting many to seek alternative finance solutions. It typically boils down to perceived risk and regulatory pressures, with a growing number of businesses unfortunately being penalised by a limited credit history, insufficient assets or simply operating in a volatile sector, such as retail, tourism or hospitality. We feel this low appetite towards risk is holding UK business back, too rigid and the reason why we’ve always adopted a ‘can-do’ approach, driven by a desire to leave no stone unturned in order to fund an SME’s growth ambitions. Our research further highlights how the economy needs bold, innovative and entrepreneurial thinking right about now. Lenders play a critical role in creating a climate built for growth rather than one that is stifled by fear.”