MORE than a quarter of businesses in Yorkshire may be missing out on access to finance – simply because of fears about approaching their bank.
One in four respondents in the Business Finance Barometer, independently commissioned and published by Close Invoice Finance, said they hadn’t asked for increased credit from their bank for fear of being turned down or the bank deciding to increase the cost of their existing borrowing.
Ian Steward (right), of Close Invoice Finance, said: “At a time when the country is struggling to get back on its feet, it’s astonishing that small businesses, the very engine room of our economy, find themselves in a situation where they not only feel unable to access funds to grow, but actually lack the confidence to even ask for it in the first place.”
He said: “The survey also demonstrated that a fifth of businesses in Yorkshire aren’t happy with the level of personal service they receive from their bank.
“Ironically, our last Barometer showed that the majority of firms remain reluctant to change provider – perhaps a case of better the devil you know.”
The survey showed that a third of UK firms had plans to expand over the next 12 months, but Mr Steward said: “Given that so many appear to have somewhat broken relationships with their banks, it’s especially important that they realise there are other options open to them.”
A report for the Department for Business said invoice finance had a crucial role to play in private sector recovery.