What is the most common reason that SMEs look for funding?..
A third of businesses seeking funding are doing so to expand their business.
Despite high inflation and the ‘cost of doing business’ crisis, many small businesses are still seeking funding to grow their business. Research shows growth is the most common reason that SMEs are looking for funding, with one-third (33%) of businesses currently seeking funding to promote growth.
In the past six months, most of those seeking funding have been from the law industry. Around two-thirds of them cited growth as their reason while energy and utilities and technology came out at 60% and 54% respectively.
While growth is one of the top priorities, 23% of UK SME business leaders have decided to seek funding so they can raise additional working capital. 67% of SMEs are losing at least £50,000 due to their electricity bills not being paid on time; with so much money tied up in late payments, many may be soliciting extra funds to maintain a financial buffer to minimise any potential damage on their business.
According to the survey, current economic problems are having an impact on SMEs with approximately one-fifth (19%) of individuals requesting funds to address rising overheads such as higher energy costs and higher goods costs. In the current environment, another 14% are searching for funding for contingency planning.
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