One in ten SMEs that have struggled to access funding eventually folded, according to research from Shawbrook.
The study found that three quarters of small and medium-sized businesses had difficulties accessing funding, with 29% having to delay investments and 29% unable to take advantage of growth opportunities.
Funding challenges have also led to decisions not to invest in new technology or hire more staff.
The research highlights the importance of specialist lenders in the SME funding space, with 67% of respondents saying they would pay more for a specialist lender that meets their requirements than apply for a high street bank loan.
Neil Rudge, head of enterprise at Shawbrook, commented: “While mainstream, traditional finance providers don’t offer the expertise or appetite to support these businesses, there are a plethora of specialist lenders who can help plug the funding gap”.
