Small businesses have to ‘jump through hoops’ to acquire financing.

Small businesses have to ‘jump through hoops’ to acquire financing.

According to a research by the Federation of Small Businesses, lending to small businesses has reached an all-time low.

Small businesses are being “pulled up the drawbridge,” according to the industry association.

To acquire a business loan, one beauty salon owner told the BBC she had to “jump through hoops.”

Lucie Grech has requested for loans from five banks since opening The Laser Lounge in October 2019, but has just recently been successful.

Ms Grech was looking for a business loan to expand her Manchester clinic from one to five rooms, but she describes the procedure as a “horror.”

“This was primarily due to the fact that I was a solo trader with no employees.”

She claims she applied to many institutions for loans ranging from £5,000 to £50,000, but was unsuccessful.

She describes herself as “jumping through hoops.” “I was unable to obtain any financial assistance.”

According to a report, Lucie’s story is far from unique.

Successful credit applications fell in the first three months of this year, according to the Federation of Small Businesses (FSB).

Only 9% of small businesses asked for new financing in the first quarter of 2022, according to the survey, which polled 12,000 members of the association. Only over two-fifths of those who applied were accepted, which is a new low.

According to the Bank of England, loans to large businesses climbed dramatically over the same time.

Web Desk

Leave a Reply

Your email address will not be published.