Open

Latest news

Explore insightful perspectives and expert advice on finance

Home |Latest news |Lending to small businesses hits all-time low

Latest news

Browse by category
Business News

Lending to small businesses hits all-time low

May 30 2022

Lending to small and medium-sized enterprises (SMEs) in the UK is the lowest it has ever been, with fewer than one in ten small businesses applying for finance in the first quarter, according to data from the Federation of Small Businesses (FSB).

The FSB's quarterly Small Business Index also revealed that of those who apply for finance, only 43% of applications are approved, which is also a record low.

Only 19% of the index's 1,200 respondents described the availability of credit as 'good', which is the lowest seen since 2016.

Of the SMEs that did manage to secure finance, 42% planned on using the credit to manage cashflow. Only 21% of SMEs plan to use the funds to update their equipment, while 19% plan to use it for an expansion, and 4% are using it for recruitment.

Martin McTague, National Chair of the FSB, said: 'Lenders pulling up the drawbridge for small firms will threaten our already faltering economic recovery.

'Businesses are born every day across the UK – many need funding to get off the ground, ensuring they reach a stage where they're profitable and creating opportunities.

'A lot of those who've worked tirelessly to adapt, survive and thrive over lockdowns need finance too, empowering them to take their firms to the next level, driving our economic recovery and the transition to net zero in the process.'

Here to help

Please complete the form below and our expert team will be in touch.

  • Contact details

    • *
    • *

  • What services are you interested in?

    • *

  • Message

    • *

  • Which location would you like to contact?

  • Communication

    • *Indicates a required fields.†At least one form of contact is required.

      By submitting this form, you agree that Attwoods can process your information in order to respond to your enquiry. For more information visit our Privacy Policy.

Bromsgrove
Bromsgrove

Attwoods is proudly based in the historic market town of Bromsgrove, Worcestershire

  • 182 Worcester Road
  • Bromsgrove
  • Worcestershire
  • B61 7AZ
Call us01527 874170
Learn more about BromsgroveGet in touch
Evesham
Evesham

Attwoods is proudly based in the picturesque town of Evesham, Worcestershire; nestled in the heart of the Vale of Evesham

  • 90-92 High Street
  • Evesham
  • Worcestershire
  • WR11 4EU
Call us01386 424388
Learn more about EveshamGet in touch
Pershore
Pershore

Attwoods is proudly based in the Georgian market town of Pershore, Worcestershire.

  • Perrott House
  • 17 Bridge Street
  • Pershore
  • Worcestershire
  • WR10 1AJ
Call us01386 554870
Learn more about PershoreGet in touch
  • Xero Logo
  • Gold Partner Logo
  • Sage
  • QuickBooks Platinum

The practices of Attwoods are carried on by Attwoods Accountants Limited, Attwoods Business Services Limited, Attwoods (Bromsgrove) Limited. Regulated for a range of investment business activities by the Association of Chartered Certified Accountants.