‘SMEs finally seeing renewed commitment from financial services industry’

Compared with 12 months ago, SMEs appear to be significantly less critical of the industry’s willingness to lend (33 per cent), down 11 per cent on the same period in Q4 2014 (44 per cent), and there is a stronger sense of ‘partnership’ between the industry and small businesses (36 per cent vs. 42 per cent in Q4 2014), according to the latest research from Hitachi Capital’s quarterly British Business Barometer.

The research suggests that businesses are finally beginning to see rhetoric turned into action following Government initiatives such as planned legislative changes, the launch of the Funding for Lending Scheme and the National Loan Guarantee Scheme - all aimed at unlocking the stranglehold between SMEs and the more traditional banking sector.

Hitachi Capital also asked the 1,021 small UK businesses it surveyed what the financial services industry do to help support SME business growth.

The main findings were:

Gavin Wraith-Carter, General Manger at Hitachi Capital Business Finance, said: “The challenge for the financial services industry is how best to support small business owners growth ambitions, whether big or small. There is a huge appetite within the industry to help, and there is greater liquidity in the market now than there has ever been. It is encouraging that our research suggests that things are indeed getting better and that business owners are feeling a greater sense of partnership and commitment to their business. Our own recent agreement with the British Business Bank through the ENABLE programme, reinforces the industry’s commitment to understanding the specific needs of SMEs in offering tailored financial solutions that fit their business requirements. There is much more that can and needs to be done, and we are fully committed to help reshape access to funding options to small businesses in a way that suits their business needs.”